Sheridan Company 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 Sheridan Company for 2022 and 2021 are provided below.

BALANCE SHEETS
						12/31/22					12/31/21
	Cash					$409000					$ 190000
	Accounts receivable					361000					216000
	Inventory					383000					479000
	Property, plant and equipment		$609000					$960000
	Less accumulated depreciation		(321000	)		288000		(304000	)		656000
						$1441000					$1541000
.
	Accounts payable					$ 178000					$ 96000
	Income taxes payable					354000					392000
	Bonds payable					359000					598000
	Common stock					224750					217000
	Retained earnings					325250					238000
						$1441000					$1541000

INCOME STATEMENT For the Year Ended December 31, 2022
	Sales revenue								$8390000
	Cost of sales								7152000
	Gross profit								1238000
	Selling expenses						$600000
	Administrative expenses						190000		790000
	Income from operations								448000
	Interest expense								73000
	Income before taxes								375000
	Income taxes								93750
	Net income								$ 281250

The following additional data were provided:

	1.	Dividends for the year 2022 were $194000.
	2.	During the year, equipment was sold for $241000. This equipment cost $354000 originally and had a book value of $288000 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