1. The following information is related to Somerset Company's fiscal year 2018.

Income Statement:

Net Income$4,000,000

Depreciation Expense650,000

Gain onSaleof Plant Assets50,000

Interest Expense5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Receivable($45,000)

Plant Assets - Purchased250,000

Plant Assets - Disposals(100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $150,000

Dividends paid were $35,000

Use this information to make a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.

2.The following information is related to Towson Company's fiscal year 2018.

Income Statement:

Net Income$2,500,000

Depreciation Expense350,000

Loss onSaleof Plant Assets40,000

Interest Expense5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Payabledecrease20,000

Plant Assets - Purchased250,000

Plant Assets - Disposals(100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

Dividends paid were $30,000

Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).