The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form:

	Year 2011	Year 2010
Cash	$45,000	$53,500
Accounts Receivable (net)	51,300	58,000
Inventories	147,200	135,000
Investments	0	60,000
Equipment	493,000	375,000
Accumulated depreciation-equipment	(113,700)	(128,000)
	$622,800	$553,500
Accounts payable	$61,500	$42,600
Bonds payable, due 2014	0	100,000
Common Stock, $10 of par--	250,000	200,000
common stock	75,000	50,000
Retained Earnings	236,300	160,900
	$622,800	$553,500

The income statement for the current year as follows:

Sales		$623,000
Cost of Merchandise Sold		348,500
Gross Profit		$274,500
Operating Expenses:
Depreciation expense	$24,700
Other operating expenses	75,300	100,000
Income from Operations		$174,500
Other Income:
Gain on Sale of Investment	$5,000
Other Expense:
Interest Expense	12,000	(7,000)
Income before income tax		$167,500
Income Tax		64,100
Net Income		$103,400

Additional Data for the current year are as follows:

(a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.

(b) Bonds payable for $100,000 were retired by payment at their face amount.

(c) 5,000 shares of common stock were issued at $15 for cash.

(d) Cash dividends decalred were paid $28,000.

(e) All sales are on account.

Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.