Coronado Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Coronado Industries for 2019 and 2018 are provided below.

BALANCE SHEETS12/31/19

12/31/18

Cash$408000

$ 193000Accounts receivable360000216000Inventory

386000482000Property, plant and equipment$608000$961000Less accumulated depreciation(319000)289000(305000)656000$1443000

$1547000

.Accounts payable$ 177000

$98000Income taxes payable352000391000Bonds payable361000600000Common stock214000214000Retained earnings339000

244000$1443000

$1547000

INCOME STATEMENT

For the Year Ended December 31, 2019Sales revenue

$8420000Cost of sales7150000Gross profit1270000Selling expenses$601000Administrative expenses191000792000Income from operations478000Interest expense72000Income before taxes406000Income taxes95000Net income$311000

The following additional data were provided:

1.Dividends for the year 2019 were $193000.

2.During the year, equipment was sold for $239000. This equipment cost $352000 originally and had a book value of $289000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.

3.All depreciation expense is in the selling expense category.

The net cash provided by operating activities is

$222000.

$261000.

$430000.

$311000.