The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below.

	December 31,
	20X1			20X0
Assets
Cash	$	174,000		$	223,200
Accounts receivable		306,000			327,600
Allowance for uncollectible accounts		(19,200	)		(20,400	)
Inventories		579,600			645,600
Machinery and equipment		1,112,400			776,400
Accumulated depreciation on machinery and equipment		(499,200	)		(446,400	)
Leasehold improvements		104,400			104,400
Accumulated amortization on leasehold improvements		(69,600	)		(58,800	)
Securities held for plant expansion		180,000			0
Patents		33,360			36,000
Totals	$	1,901,760		$	1,587,600
Liabilities and stockholders equity
Accounts payable	$	279,360		$	126,000
Dividend payable		48,000			0
Current portion of 6% serial bonds payable		60,000			60,000
6% serial bonds payablenoncurrent portion		300,000			360,000
Preferred stock		108,000			120,000
Common stock		600,000			600,000
Retained earnings		506,400			321,600
Totals	$	1,901,760		$	1,587,600

Supplemental Information:

1. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0.

	December 31,
	20X1				20X0
Beginning balance	$	321,600			$	157,200
Net income		234,000				206,400
		555,600				363,600
Dividends declared		(48,000	)			(42,000	)
Premium on repurchased preferred Stock		(1,200	)			-0-
Ending balance	$	506,400			$	321,600

2. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2.
3. Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.
4. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.
5. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1.
6. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.
7. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion.

Required:

1. Prepare the entries (in general journal form) that would be entered into T-accounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be

   Cash (OperationsNet income)	$	234,000
   Retained earnings				$	234,000

2. Prepare a statement of cash flows for Banciu Corporation for 20X1. Use the indirect method for presenting cash flow from operations.