The following financial statements were drawn from the records of Matrix Shoes:

Income Statement
For the Year Ended December 31, 2014
Sales revenue ........ $300,000
Cost of goods sold ..... (144,000)
Gross margin ......... 156,000
Operating expenses
Salary expense ........ (88,000)
Depreciation expense ..... (9,800)
Utilities expense ....... (6,400)
Operating income ...... 51,800
Non-operating items
Interest expense ....... (2,400)
Loss on the sale of equipment ... (800)
Net income ......... $ 48,600

Additional Information
1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash.
2. Paid a $7,200 cash dividend to owners.

Required
Analyze the data and prepare a statement of cash flows using the directmethod.

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Balance Sheets As of December 31 2014 2013 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment S 94,300 36,000 72,000 S 14,100 40,000 64,000 16,000 170,000 (94,000 30,000 $240,100 98,000 Accumulated depreciation-eqip 47,800) 46,000 $298,500 Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings S 24000 26,400 10,000 1400 1,000 24,000 110,000 108,700 67300 S240,100 15,000 800 150,000 Total liabilities and equity $298,500