This is all the information I was given

Waterway Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Waterway Industries for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation BALANCE SHEETS 12/31/22 $408000 359000 386000 $609000 (322000) 287000 $1440000 12/31/21 $ 194000 217000 480000 $959000 (303000) 656000 $1547000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 175000 350000 359000 220250 335750 $1440000 $ 97000 392000 602000 214000 242000 $1547000 $8400000 7153000 1247000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales Gross profit Selling expenses $602000 Administrative expenses 194000 Income from operations Interest expense Income before taxes Income taxes Net income 796000 451000 70000 381000 95250 $285750 The following additional data were provided: 1. Dividends for the year 2022 were $192000. 2. During the year, equipment was sold for $240000. This equipment cost $351000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Under the direct method, the cash received from customers is $8442000. $8542000. O $8258000 O $8400000