For the just completed year, Hanna Company had net income of $134,000. 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	$	61,000	$	83,000
Accounts receivable	$	166,000	$	196,000
Inventory	$	435,000	$	367,000
Prepaid expenses	$	11,500	$	13,800
Current liabilities:
Accounts payable	$	356,000	$	392,000
Accrued liabilities	$	8,000	$	12,700
Income taxes payable	$	38,000	$	33,000

The Accumulated Depreciation account had total credits of $58,000 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	$	1,080,000
Cost of goods sold		600,000
Gross margin		480,000
Selling and administrative expenses		310,000
Income before taxes		170,000
Income taxes		36,000
Net income	$	134,000

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.)