The following financial statements were drawn from the records of Matrix Shoes:

Balance Sheets As of December 31
	Year 2				Year 1
Assets
Cash	$	125,168			$	27,130
Accounts receivable		54,029				62,560
Merchandise inventory		126,353				114,320
Notes receivable		0				30,300
Equipment		152,700				259,300
Accumulated depreciationequipment		(75,245	)			(141,060	)
Land		78,500				48,500
Total assets	$	461,505			$	401,050
Liabilities
Accounts payable	$	43,029			$	49,790
Salaries payable		30,725				24,580
Utilities payable		529				1,058
Interest payable		0				2,340
Notes payable (long-term)		0				60,000
Common stock		307,300				242,700
Retained earnings		79,922				20,582
Total liabilities and equity	$	461,505			$	401,050

Income Statement For the Year Ended December 31, Year 2
Sales revenue	$	588,300
Cost of goods sold		(292,120	)
Gross margin		296,180
Operating expenses
Salary expense		(189,200)
Depreciation expense		(16,335	)
Utilities expense		(12,860	)
Operating income		77,785
Nonoperating items
Interest expense		(3,448)
Loss on the sale of equipment		(1,470	)
Net income	$	72,867

Additional Information

1. Sold equipment costing $106,600 with accumulated depreciation of $82,150 for $22,980 cash.
2. Paid a $13,527 cash dividend to owners.

Required Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)