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Breakwater Boats sells boating accessories. At the end of 2018, the income statement and comparative balance sheet were prepared as shown below. Breakwater Boats Balance Sheet As at January 31 2018 2017 Assets Current Assets Cash $170,725 $64,200 Accounts Receivable $94,000 $99,500 Merchandise Inventory $212,000 $200,000 Prepaid Expenses $15,100 $15,100 Total Current Assets $491,825 $378,800 Noncurrent Assets Land $42,000 Equipment $324,000 $324,000 Less: Accumulated Depreciation $-27,200 $-20,900 Total Noncurrent Assets $296,800 $345,100 Total Assets $788,625 $723,900 Liabilities Current Liabilities Accounts Payable $51,100 $42,200 Notes Payable, Current Portion $10,000 $10,000 Total Current Liabilities $61,100 $52,200 Notes Payable, Long-Term Portion $54,000 $64,000 Total Liabilities $115,100 $116,200 Stockholders' Equity Common Stock $151,000 $151,000 Retained Earnings $522,525 $456,700 Total Stockholders' Equity $673,525 $607,700 Total Liabilities and Equity $788,625 $723,900 Additional Information: During 2018, land was sold for a gain of $4,700. There was no purchase of equipment throughout the year. Breakwater Boats Income Statement For the Year Ended January 31, 2018 Sales $555,000 Cost of Goods Sold $333,000 Gross Profit $222,000 Operating Expenses Depreciation Expense $6,300 Other Operating Expenses $69,900 Total Operating Expenses $76,200 Income from Operations $145,800 Other Revenue Gain on Sale of Land $4,700 Income before Income Tax $150,500 Income Tax $52,675 Net Income $97,825 Prepare the statement of cash flows using the direct method. Assume accounts payable is only for the purchase of merchandise inventory. Do not show the reconciliation schedule of net income with net cash provided (used) by operating activities at the bottom of the statement of cash flows. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash. Prepare the statement of cash flows using the direct method. Assume accounts payable is only for the purchase of merchandise inventory. Do not show the reconciliation schedule of net income with net cash provided (used) by operating activities at the bottom of the statement of cash flows. Do not enter dollar signs or commas in the input boxes Use the negative sign for a decrease in cash. 560500 Breakwater Boats Cash Flow Statement For the Year Ended January 31, 2018 Cash Flow from Operating Activities Cash Receipts Cash Received from Customers Cash Payments Payments for Merchandise Inventory 203100 Payments for Other Operating Expenses Payments for Income Taxes