Condensed comparative balance sheets of ConnieJo Company at December Years

Condensed comparative balance sheets of ConnieJo Company at December 31, Years 1 and 2, are as follows:

	Year 2	Year 1
Cash	$ 45,000	$ 53,500
Accounts receivable (net)	51,300	58,000
Inventories	147,200	135,000
Investments	0	60,000
Equipment	493,000	375,000
Accumulated depreciation—equipment	(113,700)	(128,000)
Total assets	$622,800	$ 553,500

Accounts payable	$ 61,500	$ 42,600
Bonds payable, due Year 4	0	100,000
Common stock, $10 par	250,000	200,000
Paid-in capital in excess of par	75,000	50,000
Retained earnings	236,300	160,900
Total liabilities and stockholders’ equity	$ 622,800	$553,500

The income statement for Year 2 is as follows:

Additional data for the current year are as follows:

Fully depreciated equipment costing $39,000 was scrapped, no salvage value, and equipment was purchased for $157,000.
Bonds payable for $100,000 were retired by payment at their face amount.
5,000 shares of common stock were issued at $15 for cash.
Cash dividends declared and paid, $28,000.
All sales are on account.

Prepare a statement of cash flows for the year ending December 31, Year 2, using the direct method of reporting cash flows from operating activities.