Operating Cash Flows: Direct Method

Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2.

Tidwell Company Comparative Balance Sheets At December 31, 20X1 and 20X2
	20X1	20X2
Current assets:
Accounts receivable	$354,000	$281,000
Inventories	121,000	145,000
Current liabilities:
Accounts payable	300,000	232,500

Tidwell Company Income Statement For the Year Ended December 31, 20X2
Revenues	$1,199,000
Gain on sale of equipment	53,000
Cost of goods sold	(650,000)
Depreciation expense	(121,000)
Interest expense	(22,500)
Net income	$458,500

Compute operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow.)