Use the information provided below to prepare a reconciliation of net income to cash flows from operating activities. Amounts to be deducted must be entered with a minus sign. Document your calculations.

Peoria Corporation
Comparative Balance Sheets
December 31, 2018 and 2017
		December 31
		2018	2017
Assets
Cash		52,000	90,000
Accounts Receivable		180,000	130,000
Merchandise Inventory		230,000	200,000
Prepaid Insurance		15,000	25,000
Land		750,000	600,000
Equipment		700,000	500,000
Less: Accum. Depr.		(250,000)	(200,000)
Totals		1,677,000	1,345,000
Liabilities & Stockholders' Equity
Accounts Payable		130,000	148,000
Wages Payable		68,000	63,000
Income Taxes Payable		90,000	110,000
Long-term Note Payable		350,000	300,000
Common Stock		550,000	400,000
Retained Earnings		489,000	324,000
Totals		1,677,000	1,345,000

Peoria Corporation
Income Statement
For the year ended December 31, 2018
Sales		1,250,000
Cost of Goods Sold		700,000
Gross Margin		550,000
Depreciation Expense		50,000
Other Operating Expenses		100,000
Income from Operations		400,000
Other Income (Expenses):
Interest Expense		25,000
Income before Income Taxes		375,000
Income Taxes Expense		150,000
Net Income		225,000

Additional information for 2018:
A.	Cash received from long-term borrowing	50,000
B.	Cash paid for merchandise inventory	748,000
C.	Cash paid for income taxes	170,000
D.	Cash dividends paid	60,000
E.	Cash paid for other operating expenses	85,000
F.	Cash paid to purchase equipment	200,000
G.	Cash received from customers	1,200,000
H.	Cash received from issuing stock	150,000
I.	Cash paid to purchase land	150,000
J.	Cash paid for interest	25,000
K.	Issued mortgage for land and building.	200,000