Condensed financial data follow for Wildhorse Ltd. Wildhorse reports under ASPE.

WILDHORSE LTD. Balance Sheet December 31
Assets		2021		2020
Cash		$127,490		$46,300
Accounts receivable		77,300		45,000
Inventory		126,800		91,350
Prepaid expenses		37,100		28,900
Long-term investments		125,900		111,900
Property, plant, and equipment		263,900		243,400
Accumulated depreciation		(53,500	)	(51,700	)
Total assets		$704,990		$515,150
Liabilities and Shareholders Equity
Accounts payable		$91,700		$76,000
Accrued expenses payable		12,000		7,500
Notes payable		109,200		135,700
Common shares		236,100		179,300
Retained earnings		255,990		116,650
Total liabilities and shareholders equity		$704,990		$515,150

WILDHORSE LTD. Income Statement Year Ended December 31, 2021
Sales				$493,300
Cost of goods sold				184,200
Gross profit				309,100
Operating expenses		$57,200
Depreciation expense		45,100
Loss on sale of equipment		8,140		110,440
Profit from operations				198,660
Other expenses
Interest expense				4,590
Profit before income tax				194,070
Income tax expense				42,100
Profit				$151,970

Additional information:
1.		New equipment costing $80,500 was purchased for $27,900 cash and a $52,600 note payable.
2.		Equipment with an original cost of $60,000 was sold at a loss of $8,140.
3.		Notes payable matured during the year and were repaid.
4.		A long-term investment was acquired for cash.
5.		Accounts payable relate only to merchandise creditors.
6.		Accrued expenses payable and prepaid expenses relate to operating expenses.

Prepare the operating section of the cash flow statement using the direct method assuming that accounts payable relate only to merchandise creditors and that accrued expenses payable and prepaid expenses relate to operating expenses.