Mortonson Company has not yet prepared a formal statement of cash flows for the 2014 fiscal year. Comparative balance sheets as of December 31, 2013 and 2014, and a statement of income and retained earnings for the year ended December 31, 2014, are presented as follows.

MORTONSON COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2014 ($000 OMITTED)
Sales revenue				$3,886
Expenses
Cost of goods sold		$1,233
Salaries and benefits		769
Heat, light, and power		78
Depreciation		89
Property taxes		20
Patent amortization		21
Miscellaneous expenses		13
Interest		35		2,258
Income before income taxes				1,628
Income taxes				814
Net income				814
Retained earnings