Swifty Corporation 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 Swifty Corporation for 2019 and 2018 are provided below.

BALANCE SHEETS12/31/19

12/31/18

Cash$408000

$ 191000Accounts receivable358000216000Inventory

386000481000Property, plant and equipment$607000$959000Less accumulated depreciation(318000)289000(306000)653000$1441000

$1541000

.Accounts payable$ 175000

$94000Income taxes payable354000391000Bonds payable362000602000Common stock214000214000Retained earnings336000

240000$1441000

$1541000

INCOME STATEMENT

For the Year Ended December 31, 2019Sales revenue

$8400000Cost of sales7150000Gross profit1250000Selling expenses$600000Administrative expenses190000790000Income from operations460000Interest expense73000Income before taxes387000Income taxes96000Net income$291000

The following additional data were provided:

1.Dividends for the year 2019 were $191000.

2.During the year, equipment was sold for $242000. This equipment cost $350000 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.

Under the direct method, the cash received from customers is

$8400000.

$8437000.

$8542000.

$8258000.

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