Statement of Cash FlowsDirect Method

Peoria Corp. just completed another successful year, as indicated by the following income statement:

	For the Year Ended December 31, 2017

Sales revenue	$1,250,000
Cost of goods sold	700,000
Gross profit	$550,000
Operating expenses	150,000
Income before interest and taxes	$400,000
Interest expense	25,000
Income before taxes	$375,000
Income tax expense	150,000
Net income	$225,000

Presented here are comparative balance sheets:

	December 31
	2017		2016
Cash	$52,000		$90,000
Accounts receivable	180,000		130,000
Inventory	230,000		200,000
Prepayments	15,000		25,000
Total current assets	$477,000		$445,000
Land	$750,000		$600,000
Plant and equipment	700,000		500,000
Accumulated depreciation	(250,000)		(200,000)
Total long-term assets	$1,200,000		$900,000
Total assets	$1,677,000		$1,345,000
Accounts payable	$130,000		$148,000
Other accrued liabilities	68,000		63,000
Income taxes payable	90,000		110,000
Total current liabilities	$288,000		$321,000
Long-term bank loan payable	$350,000		$300,000
Common stock	$550,000		$400,000
Retained earnings	489,000		324,000
Total stockholders' equity	$1,039,000		$724,000
Total liabilities and stockholders' equity	$1,677,000		$1,345,000

Other information is as follows:

1. Dividends of $60,000 were declared and paid during the year.
2. Operating expenses include $50,000 of depreciation.
3. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.

1. Prepare a statement of cash flows for 2017 using the direct method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.

Need help on finding the Inventory balance, Operating Expense and the total. I tried 30,000 and -30,000 for inventory and it is incorrect.

Peoria Corp. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Cash collections from customers Cash payments for: Inventory 1,200,000 Operating expenses Interest -25,000 Income taxes -170,000 172,000 Total cash payments Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of land Acquisition of plant and equipment - 150,000 -200,000 Net cash used by investing activities -350,000