The comparative balance sheets for 20x2 and 20x1 and the income statement for 20x2 are given below for ABC Corporaion. Additional information from ABCs' accounting records is also provided.

ABC CorporationComparative

Balance Sheets

December 31, 20x2 and 20x1

($ in thousands)

20x2 20x1

AssetsCash $ 103 $ 75

Accounts receivable 116 120

Short-term investment 55 26

Inventory 118 115

Land 86 105

Buildings and equipment 630 490

Less: Accumulated depreciation (169 ) (120 )$ 939 811

LiabilitiesAccounts payable $ 35 $ 44

Salaries payable 3 6

Interest payable 8 6

Income tax payable 9 12

Notes payable 0 28

Bonds payable 246 190

Shareholders EquityCommon stock 330 290

Paid-in capitalexcess of par 173 145

Retained earnings 135 90$ 939 $ 811

ABC Corporation

Income Statement

For Year Ended December 31, 20x2

($ in thousands)

Revenues: Sales revenue $ 520

Expenses:Cost of goods sold $ 220

Salaries expense 73

Depreciation expense 49

Interest expense 18

Loss on sale of land 4

Income tax expense 66 430

Net income $ 90

Hint: For purposes of the statement of cash flows, loss on sale of land is treated in a manner similar to depreciation expense. Both are non-cash items.

Additional information from the accounting records:

Land that originally cost $19,000 was sold for $15,000.

The common stock of Hawkeye Company was purchased for $29,000 as a short-term investment not classified as a cash equivalent.

New equipment was purchased for $140,000 cash.

A $28,000 note was paid at maturity on January 1.

On January 1, 20x2, bonds were sold at their $56,000 face value.Common stock ($40,000 par) was sold for $68,000.

Net income was $90,000 and cash dividends of $45,000 were paid to shareholders.

All inventory purchases are on credit and all debits to accounts payable reflect cash payments for inventory.

Required:Prepare the statement of cash flows for Bowers Corporation for the year ended December 31, 20x2. Present cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)