Pearl Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Pearl as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

PEARL COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31
		2020		2019
Current assets
Cash		$28,200		$19,800
Accounts receivable		75,600		58,100
Inventory		219,700		251,200
Prepaid expenses		9,000		6,900
Total current assets		332,500		336,000
Plant assets
Plant assets		598,100		505,400
Less: Accumulated depreciationplant assets		149,300		124,300
Net plant assets		448,800		381,100
Total assets		$781,300		$717,100
Current liabilities
Accounts payable		$123,800		$116,000
Salaries and wages payable		46,800		71,800
Interest payable		27,000		25,100
Total current liabilities		197,600		212,900
Long-term debt
Bonds payable		70,000		100,000
Total liabilities		267,600		312,900
Stockholders equity
Common stock, $10 par		370,000		280,000
Retained earnings		143,700		124,200
Total stockholders equity		513,700		404,200
Total liabilities and stockholders equity		$781,300		$717,100

PEARL COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020
Sales revenue		$1,267,000
Cost of goods sold		721,600
Gross profit		545,400
Expenses
Salaries and wages expense		253,400
Interest expense		75,200
Depreciation expense		25,000
Other expenses		8,200
Total expenses		361,800
Operating income		183,600
Income tax expense		43,300
Net income		$140,300

The following is additional information concerning Pearls transactions during the year ended May 31, 2020.

1.		All sales during the year were made on account.
2.		All merchandise was purchased on account, comprising the total accounts payable account.
3.		Plant assets costing $92,700 were purchased by paying $22,700 in cash and issuing 7,000 shares of stock.
4.		The other expenses are related to prepaid items.
5.		All income taxes incurred during the year were paid during the year.
6.		In order to supplement its cash, Pearl issued 2,000 shares of common stock at par value.
7.		Cash dividends of $120,800 were declared and paid at the end of the fiscal year.

(b)

Prepare a statement of cash flows for Pearl Company for the year ended May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)