The following are comparative balance sheets and income statement for Bahati Corporation:
Bahati Corporation
Comparative Balance Sheets
as of December 31, 2010 and 2009
| Assets |
2010 |
2009 |
| Cash |
$ 37,000 |
$120,000 |
| Accounts receivable |
195,000 |
105,000 |
| Inventory |
180,000 |
225,000 |
| Long-term investments |
0 |
60,000 |
| Totals |
$412,000 |
$510,000 |
|
|
|
| Liabilities and shareholder's equity |
|
|
| Accounts payable |
$ 12,000 |
$115,000 |
| Salaries and wages payable |
8,000 |
2,000 |
| Interest payable |
1,000 |
3,000 |
| Income taxes payable |
20,000 |
15,000 |
| Notes payable |
70,000 |
100,000 |
| Common stock |
125,000 |
125,000 |
| Retained earnings |
176,000 |
150,000 |
| Totals |
$412,000 |
$510,000 |
Bahati Corporation
Income Statement
For the Year Ended December 31, 2010
| Sales |
|
$680,000 |
| Operating expenses: |
|
|
| Cost of goods sold |
$375,000 |
|
| Salaries & wages expense |
128,000 |
|
| Rent expense |
67,000 |
|
| Interest expense |
6,000 |
|
| Income tax expense |
25,000 |
|
| Total operating expenses |
|
601,000 |
| Income from operations |
|
79,000 |
| Other items: |
|
|
| Loss on sale of long-term investment |
|
(8,000) |
| Net income |
|
$ 71,000 |
Cash dividends of $45,000 were paid in 2010. Bahati uses the direct method in preparing its Statement of Cash Flows.
What would Bahati's net cash flows from operating activities be in its Statement of Cash Flows for the year ended December 31, 2010? Show your computations and clearly label your final answer in the box below.