The following are comparative balance sheets and an income statement for Wentworth Company. Wentworth Company Balance Sheets as of December 31 2021 $ 21,500 195,000 180,000 2020 $ 120,000 105,000 225,000 60,000 $ 510,000 $ 396,500 Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and shareholders' equity Accounts payable Operating expenses payable Bonds payable Common stock Retained earnings Totals $ 75,000 24,000 70,000 125,000 102,500 $ 396,500 $ 120,000 15,000 100,000 125,000 150,000 $ 510,000 $560,000 Wentworth Company Income Statement For the Year Ended December 31, 2021 Sales Cost of goods sold: Beginning inventory $225,000 Purchases 330,000 Goods available for sale 555,000 Less: ending inventory 180,000 Cost of goods sold Gross profit Operating expenses Income from operations Other expenses: Loss on sale of long-term investment Net loss 375,000 185,000 180,000 5,000 (7,500) $ (2,500) Cash dividends of $45,000 were paid in 2021. Required: Prepare a statement of cash flows for 2021 using the direct method. (Amounts to be deducted should be indicated with a minus sign.) WENTWORTH COMPANY Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Cash inflows: Cash outflows: For operating expenses Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Cash balance, January 1 Cash balance, December 31