Donellys, Inc. has prepared the following comparative balance sheets for 2007 and 2008: Cash Receivables Inventory Prepaid expenses Plant assets S 297,000 159,000 150,000 18,000 1,260,000 (450,000) s 153,000 107,000 180,000 27,000 1,050,000 (375,000) 153,000 174,000 $1587000 S1316,000 Patent, net (intangible asset) s 153,000 S168,000 42,000 450,000 Accounts payable Accrued liabilities Bonds payable Preferred stock Common stock Retained earnings 60,000 0 645,000 600,000 0 600,000 $1587,000 S1,316,000 The Accumulated Depreciation account has been credited only for the depreciation expense for the period. That is, there was no plant asset sold during 2008. During 2008, new plant assets were purchased for $210,000. No Patent was purchased or sold during 2008. 1. 2. 3. For 2008 Year Net income Net sales coGs Depreciation expense Amortization of patents Cash dividends declared and paid $211,000 1,980,000 1,089,000 75,000 21,000 138,000 Required: 1. Prepare a Statement of Cash Flows for Donellys, Inc. for the year 2008. (Use the indirect method.) From the information provided, calculate the following items for the direct method. A. Cash received from customers. (Hint: Work on A/R account.) B. Cash paid to suppliers. (Hint: Work on Inventory and A/P accounts.) 2