Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2.

Tidwell Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

	20X1	20X2
Current Assets:
Accounts receivable	$353,000.00	$280,500.00
Inventories	123,000.00	155,000.00
Current Liabilities:
Accounts payable	302,000.00	237,500.00

Tidwell Company

Income Statement

For the Year Ended December 31, 20X2

Revenues	$1,195,000.00
Gain on sale of equipement	48,000.00
Cost of goods sold	(648,000.00)
Depreciation expense	(120,000.00)
Interest expense	(28,500.00)
Net income	$446,500.00

Required:

Compute operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow.)

Tidwell Company

Cash Flows from Operating Activities, Direct Method

For the Year Ended December 31, 20X2

	Income Statement	Adjustments	Cash Flows
Revenues
Gain on sale of equipment
Cost of goods sold
Depreciation expense
Interest expense
Net income
Net cash from operating activities