The financial statements of Deutsch Company are provided below:

BALANCE SHEETS

12/31/22 12/31/21

Cash $408,000 $ 192,000

Accounts receivable 360,000 216,000

Inventory 384,000 480,000

Property, plant and equipment $608,000 $960,000

Less accumulated depreciation (320,000) 288,000 (304,000) 656,000

$1,440,000 $1,544,000

Accounts payable $ 176,000 $ 96,000

Income taxes payable 352,000 392,000

Bonds payable 360,000 600,000

Common stock 216,000 216,000

Retained earnings 336,000 240,000

$1,440,000 $1,544,000

INCOME STATEMENT

For the Year Ended December 31, 2022

Sales revenue $8,400,000

Cost of sales 7,104,000

Gross profit 1,296,000

Operating expenses 792,000

Income from operations 504,000

Interest expense 72,000

Loss on sale of equipment 48,000

Income before taxes 384,000

Income taxes 96,000

Net income $ 288,000

The following additional data was provided:

Depreciation for the year of $80,000 is included in the operating expenses.

Instructions:

Prepare the net cash provided by operating activities using the direct method. Show all calculations!