The following information is given to you on Dec. $31,2013$

Cash balance as on January $1,2013$ $$20,000$

Total revenue $($cash and credit$)300,000$

Cash received from sales during the year $220,000$

Cost of goods sold, paid for in cash during the year $140,000$

Operating expenses paid in cash $20,500$

Administrative expenses paid during the year $25,000$

Purchase of machinery during the year $35,000$

Cash paid to account payables during the year $17,000$

Decrease in account receivables $26,000$

Sale of property for cash $35,000$

Cash dividends paid $7,800$

Borrowings by issue of Notes payable $10,000$

Repayment of notes payable $7,500$

Required: prepare a statement of cash flows from the above information using the direct

method