Expanded Statement of Cash Flows Financial statements for McDowell Company as well as additional information relevant to cash flows during the period are shown. McDowell Company Income Statement For Year Ended December 31, 20-2 Net sales Cost of goods sold Gross profit Operating expenses Operating income $1,889,000 942,000 $947,000 573,300 $373,700 Other revenues and expenses: Interest revenue $3,900 Interest expense (800) Loss on sale of store equipment (15,300) (12,200) Income before taxes $361,500 Income tax expense 127,000 Net income $234,500