Sunland 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 Sunland Company for 2019 and 2018 are provided below.

BALANCE SHEETS 12/31/19 12/31/18

Cash $406000 $ 191000

Accounts receivable 360000 214000

Inventory 386000 482000

Property, plant and equipment $607000 $962000

Less accumulated depreciation (318000) 289000 (302000) 660000

$1441000 $1547000

Accounts payable $ 175000 $94000

Income taxes payable 350000 394000

Bonds payable 360000 599000

Common stock 216000 216000

Retained earnings 340000 244000

$1441000 $1547000

INCOME STATEMENT

For the Year Ended December 31, 2019

Sales revenue $8410000

Cost of sales 7150000

Gross profit 1260000

Selling expenses $600000

Administrative expenses 191000 791000

Income from operations 469000

Interest expense 73000

Income before taxes 396000

Income taxes 97000

Net income $299000

The following additional data were provided:

1.Dividends for the year 2019 were $192000.

2.During the year, equipment was sold for $242000. This equipment cost $352000 originally and had a book value of $289000 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.

How do you solve net cash provided by operating activities?