The income statement of Harborview Retail Co and additional information for 2025 are shown below.
| Income Statement — For the Year Ended December 31, 2025 |
|---|
| Sales Revenue | 180,000 |
| Cost of Goods Sold | (105,000) |
| Gross Profit | 75,000 |
| Operating Expenses | (38,000) |
| Interest Expense | (1,800) |
| Income Before Income Tax | 35,200 |
| Income Tax Expense | (6,200) |
| Net Income | 29,000 |
Additional information:
- Accounts receivable decreased by $5,000 during the year.
- Inventory decreased by $4,000 and accounts payable decreased by $3,500.
- Operating expenses include depreciation of $9,000. Accrued operating liabilities increased by $1,500.
- Interest of $1,800 and income taxes of $6,200 were paid in cash.
- Equipment was purchased for $22,000 cash.
- Borrowings of $10,000 were received in cash, and cash dividends of $8,000 were paid.
- Cash and cash equivalents were $12,000 at the beginning of the year and $37,000 at the end.
Instructions: Prepare a statement of cash flows using the DIRECT method (IAS 7). In addition to the main statement, present a separate supporting schedule (working) for each of: Cash Received from Customers, Cash Paid to Suppliers, Cash Paid for Operating Expenses — showing step by step how each figure is derived.