Prepare a statement of Cash Flows in the direct method

		2017	2016
Assets:
Cash		200,000	70,000
Accounts receivable, net		87,000	65,000
Inventory		55,000	60,000
Property, plant & equipment		700,000	600,000
Accumulated depreciation		(100,000)	(60,000)
Total Assets		942,000	735,000
Liabilities & Equity
Accounts payable		45,000	40,000
Accrued liabilities		46,000	40,000
Common stock		460,000	460,000
Retained earnings		391,000	195,000
		942,000	735,000
Sales		1,200,000
Cost of goods sold		650,000
Gross profit		550,000
Operating expenses		180,000
Pre-tax income		370,000
Income taxes		74,000
Net income		296,000