Problem: You are the chief accountant for Jared Jo Your assistant has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company's balance sheet accounts.

FOR THE YEAR ENDED DECEMBER 31, 2019 Revenue:

Net sales $9,500,000

Interest income 320,000

Gain on sales of marketable securities 70,000

Total revenue and gains $9,890,000

Costs and expenses:

Cost of goods sold$4,860,000

Operating expenses (including depreciation of $700,000) 3,740,000

Interest expense270,000

Income tax expense300,000

Loss on sales of plant assets90,000

Total costs, expenses, and losses9,260,000

Net income$630,000

Changes in the company's balance sheet accounts over the year are summarized as follows.

1.Accounts Receivable decreased by $85,000.

2.Accrued Interest Receivable increased by $15,000.

3.Inventory decreased by $280,000, and Accounts Payable to suppliers of merchandise decreased by $240,000.

4.Short-term prepayments of operating expenses decreased by $18,000, and accrued liabilities for operating expenses increased by $35,000.

5.The liability for Accrued Interest Payable decreased by $16,000 during the year.

6.The liability for Accrued Income Taxes Payable increased by $25,000 during the year.

7.The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts.

Debit EntriesCredit Entries

Marketable Securities$120,000$210,000

Notes Receivable (cash loans made to others)250,000190,000

Plant Assets (see paragraph8)3,800,000360,000

Notes Payable (short-term borrowing)620,000740,000

Bonds Payable 1,100,000

Capital Stock 50,000

Additional Paid-in Capital (from issuance of stock)840,000

Retained Earnings (see paragraph9)320,000630,000

8.The $360,000 in credit entries to the Plant Assets account is net of any debits to accumulated depreciation when plant assets were retired. The $360,000 in credit entries represents the book value of all plant assets sold or retired during the year.

9.The $320,000 debit to Retained Earnings represents dividends declared and paid during the year. The $630,000 credit entry represents the net income for the year.

10.All investing, and financing activities were cash transactions.

11.Cash and cash equivalents amounted to $448,000 at the beginning of the year and to $330,000 at year-end.

Instructions: make a statement of cash flows for the current year. Cash flows from operating activities are to be determined by the direct method. Uses of cash should be reflected as negative balances. Show your calculations for the following:

a. cash received from customers.

b. Interest received.

c. Cash paid to suppliers and employees.

d. Interest paid.

e. Income taxes paid.

f. Proceeds from sales of marketable securities.

g. Proceeds from sales of plant assets.

h. Proceeds from issuing capital stock.