Sheffield Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Sheffield Corp. for 2022 and 2021 are provided below.

BALANCE SHEETS

12/31/22

12/31/21

Cash $410000

$ 191000

Accounts receivable 361000 218000

Inventory

386000 482000

Property, plant and equipment $606000 $958000

Less accumulated depreciation (319000 ) 287000 (304000 ) 654000

$1444000

$1545000

.

Accounts payable $ 176000

$ 97000

Income taxes payable 350000 393000

Bonds payable 359000 600000

Common stock 208750 216000

Retained earnings 350250

239000

$1444000

$1545000

INCOME STATEMENT

For the Year Ended December 31, 2022

Sales revenue

$8420000

Cost of sales 7150000

Gross profit 1270000

Selling expenses $601000

Administrative expenses 192000 793000

Income from operations 477000

Interest expense 70000

Income before taxes 407000

Income taxes 101750

Net income

$ 305250

The following additional data were provided:

1. Dividends for the year 2022 were $194000.

2. During the year, equipment was sold for $242000. This equipment cost $353000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.

3. All depreciation expense is in the selling expense category.

Under the direct method, the total taxes paid is

$53000.

$101750.

$144750.

$43000.