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 Less accumulated depreciation $606000 $958000 (319000) 287000 (304000 654000 $1444000 $1545000 Accounts payable $ 176000 $ 97000 Income taxes payable Bonds payable 350000 393000 359000 Common stock 600000 208750 Retained earnings 216000 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 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 paldis O $43000 O $53000 O $101750 $144750