The comparative balance sheet of Village Markets, Inc., for December 31, 2007 and 2006, is as follows:

The income statement for the year ended December 31, 2007, is as follows:

The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $150,000 cash.
d. The common stock was issued for cash.
e. There was a $241,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operatingactivities.

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Dec. 31, 2007 Dec. 31, 2006 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation Total 421,900 397,200 658,900 S 456,700 365,700 623,100 175,000 230,000 590,000 (282,100) $2,015,900 450,000 (234,500) $1,836,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses (operating expenses) Dividends payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total 471,200 40,000 61,000 23,000 195,000 1,225,700 $2,015,900 456,300 45,300 58,000 20,000 120,000 1.136.400 1,836,000 Sales Cost of merchandise sold Gross profit Operating expenses: $4,367,800 2,532,000 $1,835,800 Depreciation expense Other operating expenses $ 47,600 1257,900 Total operating expenses 1,305,500 Operating income Other expense: 530,300 Loss on sale of investments Income before income tax Income tax expense Net income 25,000 505,300 175,000 330,300