M&L Corporation
			Income Statement
			For Year Ended December 31, 2019
									$
Sales									1,905,000
Cost of goods sold									(810,000)
Gross profit									1,095,000
Operating expense									(616,860)
Other gains (losses)
Gain on sale of equipment									36,600
Income before taxes									514,740
Income taxes									(82,710)
Net income									432,030

Additional information:

1. Issued new ordinary shares for cash.
2. Operating expense includes depreciation expense of $46,860.

c. Declared and paid cash dividends.

d. Sold equipment costing $93,000 for cash.

Required:

(a)	Calculate cash flows from operating activities only using the direct method. You are required to show the calculations of all individual cash flow items in operating activities clearly, not just the final answers. Marks will be deducted from answer without supporting calculations.
(b)	Comment on the results of cash flows from operating activities in (a).