Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2.

Swasey Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

1		20X1	20X2
2	Current assets:
3	Cash	$235,500.00	$675,000.00
4	Accounts receivable	$753,000.00	$586,500.00
5	Inventories	303,000.00	316,000.00
6	Long-term assets:
7	Plant and equipment	2,193,000.00	2,151,000.00
8	Accumulated depreciation	(1,201,000.00)	(1,291,000.00)
9	Land	992,000.00	1,443,500.00
10	Total assets	$3,275,500.00	$3,881,000.00
11	Current liabilities:
12	Wages payable	$700,000.00	$511,000.00
13	Long-term liabilities:
14	Bonds payable	0.00	382,000.00
15	Mortgage payable	102,500.00	0.00
16	Total liabilities	$802,500.00	$893,000.00
17	Stockholders equity:
18	Common stock	375,000.00	375,000.00
19	Paid-in capital in excess of par	282,000.00	282,000.00
20	Retained earnings	1,816,000.00	2,331,000.00
21	Total stockholders equity	2,473,000.00	2,988,000.00
22	Total liabilities and stockholders equity	$3,275,500.00	$3,881,000.00

Swasey Company

Income Statement

For the Year Ended December 31, 20X2

1	Revenues	$3,003,000.00
2	Gain on sale of equipment	90,000.00
3	Cost of goods sold	(1,914,000.00)
4	Depreciation expense	(270,000.00)
5	Interest expense	(8,500.00)
6	Net income	$900,500.00

During the year, Swasey Company sold equipment with a book value of $285,000 for $375,000 (original purchase cost of $465,000). New equipment was purchased.

	Required:
1.	Prepare a statement of cash flows for Swasey for 20X2.
2.	Reflect on the relationship between the statement of cash flows and the change in cash.