For the just completed year, Hanna Company had net income of $167,000. 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	$	63,000	$	79,000
Accounts receivable	$	162,000	$	182,000
Inventory	$	444,000	$	346,000
Prepaid expenses	$	12,100	$	14,500
Current liabilities:
Accounts payable	$	360,000	$	386,000
Accrued liabilities	$	8,000	$	12,000
Income taxes payable	$	33,200	$	28,000

The Accumulated Depreciation account had total credits of $44,000 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		314,000
Income before taxes		211,000
Income taxes		44,000
Net income	$	167,000

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.)