For the Year Ended December 31, 2007

Revenue: Net sales...............................................$2,850,000 Dividend income...................................... 104,000 Interest income........................................ 70,000 Gain on sales of marketable securities....... 4,000 Total revenue and gains......................$3,028,000

Costs and expenses: Cost of goods sold................................. $1,550,000 Operating expenses..............................980,000

Interestexpense................................. 185,000 Income tax expense........................... 90,000 Total costs and expenses.............. 2,805,000

Netincome.................................................... $223,000

End ofYear Beginning of Year

Selected account balances: Accounts receivable............................... $650,000 $ 720,000 Accrued interest receivable.....................9,000 6,000 Inventories...........................................800,000 765,000 Short-term prepayments......................20,000 15,000

Accounts payable(merchandise suppliers)..570,000 562,000 Accrued operating expenses payable.........65,000 94,000 Accrued interest payable...........................21,000 12,000 Accrued income taxes payable...................22,000 35,000

Dividend revenue is regonized on cash basis.Operating expenses include depreciation expense of$115,000

Question: Prepare a partial statement of cashflows, including only the operating activites section using thedirect method, using brackets to show cash payments. Show; cashreceived from customers, interest and dividends received, cash paidto suppliers and employees, interest paid, and income taxpaid.