Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2008 and 2007 are provided below. BALANCE SHEETS 12/31/08 12/31/07 Cash $204,000 $ 96,000 Accounts receivable 180,000 108,000 Merchandise inventory 192,000 240,000 Property, plant and equipment $304,000 $480,000 Less accumulated depreciation (160,000) 144,000 (152,000) 328,000 $720,000 $772,000 Accounts payable $ 88,000 $ 48,000 Income taxes payable 176,000 196,000 Bonds payable 180,000 300,000 Common stock 108,000 108,000 Retained earnings 168,000 120,000 $720,000 $772,000 INCOME STATEMENT For the Year Ended December 31, 2008 Sales $4,200,000 Cost of sales 3,576,000 Gross profit 624,000 Selling expenses $300,000 Administrative expenses 96,000 396,000 Income from operations 228,000 Interest expense 36,000 Income before taxes 192,000 Income taxes 48,000 Net income $ 144,000 The following additional data were provided: 1. Dividends for the year 2008 were $96,000. 2. During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. 3. All depreciation expense is in the selling expense category.

Questions 15 through 19 relate to a statement of cash flows (direct method) for the year ended December 31, 2008, for Paxson Mining Company.

15. The net cash provided by operating activities is

16. The net cash provided (used) by investing activities is

17. Under the direct method, the cash received from customers is

18. Under the direct method, the total taxes paid is

19. The net cash provided (used) by financing activities is