The $$360,000$ in credit entries to the Plant Assets account is net of any debits to accumulated

depreciation when plant assets were retired. Thus, the $$360,000$ in credit entries represents the

book value of all plant assets sold or retired during the year.

The $$320,000$ debit to Retained Earnings represents dividends declared and paid during the

year. The $$630,000$ credit entry represents the net income for the year.

All investing and financing activities were cash transactions.

Cash and cash equivalents amounted to $$448,000$ at the beginning of the year and to

$$330,000$ at year$-$end.

Instructions

You are to prepare a statement of cash flows for the current year. Cash flows from operating

activities are to be determined by the direct method.