Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold.

Splish Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. SPLISH COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3.770 Expenses Cost of goods sold $1,210 Salaries and benefits 710 Heat, light, and power 70 Depreciation 70 Property taxes 20 Patent amortization 30 Miscellaneous expenses 10 Interest 30 2,150 Income before income taxes 1,620 Income taxes 810 810 Net income Retained earnings-Jan. 1, 2020 310 Stock dividend declared and issued Retained earnings-Dec. 31, 2020 1,120 590 $530 Assets 2020 2019 $20 $268 10 780 50 510 710 570 1,768 1,150 Current assets Cash U.S. Treasury notes (available-for-sale) Accounts receivable Inventory Total current assets Long-term assets Land Buildings and equipment Accumulated depreciation-buildings and equipment Patents (less amortization) Total long-term assets Total assets 160 930 (180) 80 70 620 (110) 110 690 $1,840 990 $2,758 $402 36 320 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Notes payable Total current liabilities Long-term notes payable-due 2022 Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $300 30 320 650 190 758 190 948 840 1,280 690 530 310 1,810 $2,758 1,000 $1,840 SPLISH COMPANY Statement of Cash Flows V For the Year Ended December 31, 2020 ($000 Omitted) Cash Flows from Operating Activities V Cash Receipts from Customers $ Cash Payment for Miscellaneous Cash Payment for Income Taxes V Cash Payment for Salaries and Benefits Cash Payment for Merchandise Cash Payment for Heat, Light, and Power Cash Payment for Property Taxes Cash Payment for Interest Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Buildings and Equipment Purchase of Land Sale of Investments Net Cash Used by Investing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 $