Sharon Feldman, president of Allied Products, considers $20,000 to be a minimum cash balance for operating purposes. As can be seen from the statements below, only $15,000 was available at the end of 19x2. Since the company reported a large net income for the year, and also issued bonds and sold some long-term investments, the decline in cash is puzzling to Ms. Feldman.

	Allied Products
	Balance Sheets, 12/31/x1,x2
Assets	19x2	19x1
Current Assets
Cash	$15,000	$33,000
Accounts Receivable	$300,000	$210,000
Inventory	$250,000	$196,000
Prepaid Expenses	$7,000	$15,000
Total Current Assets	$572,000	$454,000
Long-Term Investments	$90,000	$120,000
Plant and Equipment	$860,000	$750,000
Less: Acc. Dep.	-$210,000	-$190,000
Net Plant and Equipment	$650,000	$560,000
Total Assets	$1,312,000	$1,134,000
Liab and SE
Accounts Payable	$275,000	$230,000
Accrued Liabilities	$8,000	$15,000
Total Current Liabilities	$283,000	$245,000
Bonds Payable	$200,000	$100,000
Deferred Income Taxes	$42,000	$39,000
Total Liabilities	$525,000	$384,000
Shareholders Equity
Common Stock	$595,000	$600,000
Retained Earnings	$192,000	$150,000
Total Shareholders Equity	$787,000	$750,000
Total Liabilities and SE	$1,312,000	$1,134,000
	Allied Products
	Income Statement
	YE 12/31/19x2
Sales		$800,000
-Cost of Goods Sold		-$500,000
Gross Margin		$300,000
Less Operating Expenses		-$214,000
Net Operating Income		$86,000
Non-Operating Items
Gain on Sale of Investment		$20,000
Loss on Sale of Investment		-$6,000
Income Before Taxes		$100,000
-Income Taxes		-$30,000
Net Income		$70,000

The following additional information is available for the year 19x2:

1. The company sold long term investments with an original cost of $30,000 for $50,000.
2. Equipment that had cost $90,000 and on which there was $40,000 in accumulated depreciation was sold during the year for $44,000.
3. Cash Dividends of $28,000 were declared and paid.
4. The stock of a dissidence shareholder was repurchased for cash and retired. There were no issuance of stock.

REQUIRED:

On the answer sheet below, prepare a Statement of Cash Flows (Indirect method). Please show your basic calculations.