For the just completed year, Hanna Company had net income of $177,000. Balances in the companys current asset and current liability accounts at the beginning and end of the year were as follows:

	December 31
	End of Year		Beginning of Year
Current assets:
Cash and cash equivalents	$	56,000	$	84,000
Accounts receivable	$	162,000	$	184,000
Inventory	$	426,000	$	361,000
Prepaid expenses	$	11,300	$	14,200
Current liabilities:
Accounts payable	$	366,000	$	388,000
Accrued liabilities	$	8,000	$	11,500
Income taxes payable	$	39,000	$	33,000

The Accumulated Depreciation account had total credits of $46,000 during the year. Hanna Company did not record any gains or losses during the year.

The companys income statement for the year appears below:

Sales	$	1,090,000
Cost of goods sold		565,000
Gross margin		525,000
Selling and administrative expenses		312,000
Income before taxes		213,000
Income taxes		36,000
Net income	$	177,000

Required:

Using the direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)