The following financial statements were drawn from the

Question

The following financial statements were drawn from the records of Boston Materials, Inc.:

Income Statement:

For the Year Ended December 31, 2014

Sales revenue ....... $450,000
Cost of goods sold ...... (212,000)
Gross margin ........ 238,000

Operating expenses:

Salary expense ........ (96,000)
Depreciation expense .... (18,500)
Utilities expense ....... (7,500)
Operating income ...... 116,000

Non operating items:

Interest expense ....... (3,500)
Gain on sale of equipment ... 1,500
Net income ........ $114,000

Additional Information: 

1. Sold equipment costing $48,000 with accumulated depreciation of $26,000 for $23,500 cash. 

2. Paid a $50,000 cash dividend to owners.

Required: 

Analyze the data and prepare a statement of cash flows using the direct method.