PREPARING A STATEMENT OF CASH FLOWS-DIRECT METHOD
The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows:
|
Cash collected from customers
|
$794,000
|
| Cash paid for interest |
22,100 |
|
Cash paid to employees and other suppliers of goods and services
|
215,000
|
|
Cash paid to suppliers of merchandise
|
388,000
|
|
Cash received from the issuance of long-term debt
|
12,700
|
|
Cash received from sale of equipment
|
44,000
|
|
Cash received from sale of long-term investments
|
71,400
|
|
Income taxes paid
|
58,300
|
|
Payment of dividends
|
24,000
|
|
Principal payments on mortgage payable
|
50,000
|
|
Principal payments on long-term debt
|
15,000
|
|
Proceeds from the issuance of common stock
|
85,000
|
|
Purchase of equipment
|
120,000
|
|
Purchase of long-term investments
|
83,000
|
Required:
1. Using the information provided above, calculate the net cash provided (used) by operating activities.
2. Using the information provided above, calculate the net cash provided (used) by investing activities.
3. Using the information provided above, calculate the net cash provided (used) by financing activities.