You are the controller for $21$st Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company$$s balance sheet accounts:

$21$ST CENTURY TECHNOLOGIES

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER $31,2024$

Revenue:

Net sales $ $3,200,000$

Interest revenue $40,000$

Gain on sales of marketable securities $34,000$

Total revenue and gains $ $3,274,000$

Costs and expenses:

Cost of goods sold $ $1,620,000$

Operating expenses $($including depreciation of $$150,000)1,240,000$

Interest expense $42,000$

Income tax expense $100,000$

Loss on sales of plant assets $12,000$

Total costs, expenses, and losses $3,014,000$

Net income $ $260,000$

Additional Information

Accounts receivable increased by $$60,000.$

Accrued interest receivable decreased by $$2,000.$

Inventory decreased by $$60,000,$ and accounts payable to suppliers of merchandise decreased by $$16,000.$

Short$-$term prepayments of operating expenses increased by $$6,000,$ and accrued liabilities for operating expenses decreased by $$8,000.$

The liability for accrued interest payable increased by $$4,000$ during the year.

The liability for accrued income taxes payable decreased by $$14,000$ during the year.

The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts:

Debit Entries Credit Entries

Marketable Securities $ $60,000$ $ $38,000$

Notes Receivable $($cash loans made to borrowers$)44,00028,000$

Plant Assets $($see paragraph $8)500,00036,000$

Notes Payable $($short$-$term borrowing$)92,00082,000$

Capital Stock $20,000$

Additional Paid$-$in Capital$$Capital Stock $160,000$

Retained Earnings $($see paragraph $9)120,000260,000$

The $$36,000$ in credit entries to the Plant Assets account is net of any debits to Accumulated Depreciation when plant assets were retired. The $$36,000$ in credit entries represents the book value of all plant assets sold or retired during the year.

The $$120,000$ debit to Retained Earnings represents dividends declared and paid during the year. The $$260,000$ credit entry represents the net income shown in the income statement.

All investing and financing activities were cash transactions.

Cash and cash equivalents amounted to $$244,000$ at the beginning of the year and $$164,000$ at year$-$end.

Required:

a$.$ Prepare a statement of cash flows for the current year. Use the direct method of reporting cash flows from operating activities.

Note: List any deduction in cash and cash outflows as negative amounts.Statement of Cash Flows

For the Year Ended December $31,2024$