The following financial statements were drawn from the records of Matrix Shoes. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land $123, 158 58,019 122,043 0 143,200 (68,639) 80,000 $ 457, 781 $ 28,970 67,180 110,420 30, 800 250,700 (138,080) 52,000 $ 400,990 Total assets Liabilities accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and stockholders' equity $ 42,127 37, 463 605 0 0 299,500 79,086 $ 457, 781 $ 47,590 29,970 1,210 2,380 64,500 242,100 13,240 $ 400,990 Income Statement For the Year Ended December 31, Year 2 Sales revenue S 589,790 Cost of goods sold (292,860) Gross margin 296,930 Operating expenses Salaries expense (182,740) Depreciation expense (16,069) Utilities expense (12,360) Operating income 85,761 Nonoperating items Interest expense (3, 445) Loss on the sale of equipment (1,460) Net income $ 80, 856 Additional Information 1. Sold equipment costing $107,500 with accumulated depreciation of $85,510 for $20,530 cash. 2. Pald a $15,010 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.)