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 2019 and 2018 are provided below. BALANCE SHEETS 12/31/19 12/31/18 Cash $410000 $ 190000 Accounts receivable 362000 218000 Inventory 384000 480000 Property, plant and equipment $608000 $959000 Less accumulated depreciation (319000 ) 289000 (304000 ) 655000 $1445000 $1543000 . Accounts payable $ 178000 $ 98000 Income taxes payable 352000 391000 Bonds payable 358000 600000 Common stock 218000 218000 Retained earnings 339000 236000 $1445000 $1543000 INCOME STATEMENT For the Year Ended December 31, 2019 Sales revenue $8400000 Cost of sales 7151000 Gross profit 1249000 Selling expenses $602000 Administrative expenses 191000 793000 Income from operations 456000 Interest expense 71000 Income before taxes 385000 Income taxes 97000 Net income $ 288000 The following additional data were provided: 1. Dividends for the year 2019 were $192000. 2. During the year, equipment was sold for $241000. This equipment cost $354000 originally and had a book value of $289000 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 total taxes paid is