Condensed financial data of Arma Inc. follow.
 
ARMA INC.
Comparative Balance Sheets
December 31
 
Assets  2011
   2010
 
Cash $90,800     $48,400  
Accounts receivable 92,800     33,000  
Inventories 112,500     102,850  
Prepaid expenses 28,400     26,000  
Investments 138,000     114,000  
Plant assets 270,000     242,500  
Accumulated depreciation (50,000)
   (52,000)
 
     Total $682,500 
   $514,750 
 
       
Liabilities and Stockholders' Equity    
Accounts payable $112,000   $67,300
Accrued expenses payable 16,500   17,000
Bonds payable 110,000   150,000
Common stock  220,000   175,000
Retained earnings 224,000
   105,450
 
     Total $682,500
   $514,750
 

 
ARMA INC.
Income Statement
For the Year Ended December 31, 2011
 
Sales     $392,780
Less:      
   Cost of goods sold $135,460    
   Operating expenses, excluding depreciation 12,410    
   Depreciation expense 46,500    
   Income taxes 27,280    
   Interest expense 4,730    
   Loss on sale of plant assets 7,500
   233,880
 
Net income     $158,900
 

Additional information:

New plant assets costing $85,000 were purchased for cash during the year.
Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
Bonds matured and were paid off at face value for cash.
A cash dividend of $40,350 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Complete the statement of cash flows for Arma Inc. using the direct method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow for financing and investing activities, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). List all other amounts as positive.)