Using the income statement and balance sheets of Niagara Company below, prepare a statement of cash flows for the year ended December 31, Year 9, using the direct method.

NIAGRARA COMPANY Income statement For Year Ended Dec.31, Year9
Sales	$1000
Cost of goods sold	(650)
Depreciation expense	(100)
Sales and general expense	(100)
Interest expense	(50)
Income tax expense	(40)
Net income	$60

NIAGARA COMPANY Balance Sheets December 31, Year 9 and Year 8 Year 8 Year 9 $ 60 520 770 Assets Cash .................. $ 50 Accounts receivable. net .. 500 Inventory ..................... 750 Current assets. ............ 1,300 Fixed assets, net ........... 500 Total assets ................. $1,800 1,350 550 $1,900 $ 75 615 - 20 Liabilities and Equity Notes payable to banks ...... $ 100 Accounts payable .......... 590 Interest payable. ............ 10 Current liabilities ............ Long-term debt ........ Deferred income tax. ....... 300 Capital stock............ 400 Retained earnings ............ 100 Total liabilities and equity .... $1,800 710 350 310 400 130 $1,900