The comparative balance sheets of a company at the end of two consecutive financial periods are as follows: This year Previous year $'000 $'000 $'000 $'000 Long-term investment 200 500 Building and equipment 2,450 2,100 Accumulated depreciation (625) (530) 2,025 2,070 Current assets: Cash 5 10 Short-term investment 190 280 Accounts receivable 1,340 1,480 Inventory 1,690 1,350 3,320 3,025 Current liabilities: Accounts payable (1,625) (1,550) Income tax payable (230) (185) Dividends payable (180) (210) (2,035) (1,945) Long-term loan (800) (950) 2,510 2,200 Share capital 1,200 1,000 Retained earnings 1,310 1,200 2,510 2,200 The following additional information is given: (a) Equipment costing $80,000 with accumulated depreciation of $72,000 has been sold at the beginning of this year with a loss of $2,000. (b) Long-term investment originally costing $300,000 has been sold at a profit of $50,000. (c) Total dividends declared this year was $198,000. (d) Income tax for this year was $105,000. (e) Sales in this year was $7,980,000 and cost of sales was $4,765,000. (f) Expenses other than depreciation this year was $2,683,000. You are required to compute the differences in the account balances and then prepare a statement of cash flows for this year using the direct method for operating activities.