Prepare a statement of cash flows for Bankhead. Inc for the year ended December 31, 2018, using the direct method. A negative number should use a minus sign.

Bankhead, Inc. Statement of Comprehensive Income and Statement of Retained Earnings For the Year Ended December 31, 2018 Sales revenue $2,800 Cost of goods sold 2,050 Gross margin $750 Operating expenses: Sales and administrative expenses $220 Depreciation expense 35 Other expenses 161 Total operating expenses $416 Income before income tax $334 Income tax 84 Net income $250 Dividends paid 50 Increase in retained earnings $200 Bankhead, Inc. 2017 $1,224 Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash and cash equivalents $1,565 Accounts receivable (net) 911 Inventory 480 Land 2.900 Store fixtures 520 Accumulated depreciation, store fixtures (145) 896 1,960 2,600 520 (110) $7,090 Total assets $6,231 $516 $862 Liabilities and Equity Liabilities: Accounts payable Short-term notes payable Long-term debt Total liabilities 1,147 1,648 $3,311 1,460 2,048 $4,370 $280 $280 Equity: Common stock Paid-in capital in excess of par Retained earnings 1,000 1,000 1,640 $2,920 1,440 Total equity Total liabilities and equity $2,720 $7,090 $6.231 Required: Prepare a statement of cash flows for Bankhead, Inc. for the year ended December 31, 2018 using the direct method. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Bankhead, Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2018 (Dollars in Thousands) Cash flows from operating activities: Cash receipts from: Customers 2.789 Cash payments for: Inventory -1,096 Sales and administrative expenses -220 Other cash expenses Income tax -84 Net cash flows provided by operating activities Cash flows from investing activities: : Cash payment to purchase land -300 Net cash flows used in investing activities -300 Cash flows from financing activities: Cash payments to reduce short-term borrowing 313 Cash payments to reduce long-term borrowing -161 400