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?McDaniel, Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December? 31, 2017:

?McDaniel, Inc. Comparative Balance Sheet December? 31, 2017 and 2016
	2017	2016	Increase ?(Decrease)
Cash	$ 32 comma 600$32,600	$ 12 comma 600$12,600	$ 20 comma 000$20,000
Accounts Receivable	28 comma 10028,100	35 comma 10035,100	?(7,000)
Merchandise Inventory	57 comma 30057,300	30 comma 30030,300	?27,000
?PP&E, net	?126,000	?92,000	?34,000
Total Assets	?$244,000	?$170,000	?$74,000
Accounts Payable	8 comma 1008,100	12 comma 10012,100	?$(4,000)
Accrued Liabilities	6 comma 5006,500	2 comma 5002,500	?4,000
Longminus?term Notes Payable	71 comma 40071,400	80 comma 40080,400	?$(9 comma 0009,000?)
Total Liabilities	?$86,000	?$95,000	?$(9,000)
Common Stock	?$55,000	?$3,000	?$52,000
Retained Earnings	?115,000	?78,000	?37,000
Treasury Stock	?(12,000)	?(6,000)	?(6,000)
Total? Stockholders' Equity	?$158,000	?$75,000	?$83,000
Total Liabilities and? Stockholders' Equity	?$244,000	?$170,000	?$74,000

?McDaniel, Inc. Income Statement December? 31, 2017 and 2016
	2017	2016
Sales Revenue	$ 290 comma 700$290,700
Interest Revenue	1 comma 6001,600
Gain on Sale of Plant Assets	?6,000
Total Revenues and Gains		?$298,300
Cost of Goods Sold	147 comma 100147,100
Salaries and Wages Expense	48 comma 70048,700
Depreciation Expenselong dashPlant Assets	?16,000
Other Operating Expense	23 comma 20023,200
Interest Expense	?3,500
Income Tax Expense	?7,800
Total Expenses		?246,300
Net Income		?$52,000

Use the direct method to compute the payments made to employees.? (Accrued Liabilities relate to other operating?expense.)

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