Gold Company's comparative balance sheet and income statement for last year appear below:

Statement of Financial Position

Ending Beginning

Balance Balance

Cash $ 70,000 $ 38,000

Accounts receivable 76,000 52,000

Inventory 24,000 42,000

Prepaid expenses 8,000 16,000

Long-term investments 260,000 210,000

Plant and equipment 530,000 510,000

Accumulated depreciation ( 398,000) ( 350,000)

Total assets $570,000 $518,000

Accounts payable $ 32,000 $ 54,000

Accrued liabilities 34,000 25,000

Taxes payable 4,000 11,000

Bonds payable 160,000 200,000

Deferred taxes 38,000 25,000

Common stock 150,000 120,000

Retained earnings 152,000 83,000

Total liabilities and owners' equity $570,000 $518,000

Income Statement

Sales $610,000

Cost of goods sold 310,000

Gross margin 300,000

Selling and administrative expense 190,000

Net operating income 110,000

Income taxes 33,000

Net income $ 77,000

The company declared and paid $8,000 in cash dividends during the year.

Required:

Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.