Based on the following income statement and balance sheet

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Based on the following income statement and balance sheet for Botanical Genetics Corporation, determine the cash flows from operating activities using the direct method.

Botanical Genetics Corporation

Income Statement

For Year Ended December 31, 2013

Sales


$504,000

Cost of goods sold

327,600


Depreciation

42,000


Other operating expenses

125,500

(495,100)

Other gains (losses):



     Gain on sale of equipment


7,200

Income before taxes


16,100

Income tax expense


(4,800)

Net income


$ 11,300

Botanical Genetics Corporation

Balance Sheets

At December 31


2013

2012

Cash

$64,650

$55,800

Accounts receivable

21,000

29,000

Inventory

58,000

52,100

Equipment

240,000

222,000

Accumulated depreciation

(106,000)

(96,000)

Total assets

$277,650

$262,900




Liabilities:



Accounts payable

$28,400

$23,700

Income taxes payable

1,050

1,200

Total liabilities

$29,450

$24,900

Equity:



Common stock

$106,000

$106,000

CC in excess

18,000

18,000

Retained earnings

124,200

114,000

Total equity

$248,200

$238,000

Total liabilities and equity

$277,650

$262,900

Reference no: EM13566777

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