28. (12 min.)

     Net income ..............................................                                      $250,000

     Adjustments to reconcile net income to net cash provided

     by operating activities:

     Depreciation expense ....................................                                    80,000        

       Decrease in accounts receivable ......................                               13,000        

       Decrease in inventories ...............................                                    15,000        

       Increase in prepaid expenses ..........................                                (2,500)       

       Decrease in accounts payable ..........................                               (6,000)       

       Increase in income taxes payable ......................                                  400                       

                                                              

       Net cash provided by operating activities .............                      $349,900