Walters, Inc. began operations on January 1, 2009. The following information relates to Walters' cash flows during 2009.
Cash received from owners ....................................$200,000
Cash paid for purchase of land and building ................ 129,000
Cash paid for advertising ....................................... 21,000
Cash received from customers ................................. 131,000
Cash paid to purchase machine ................................. $ 32,000
Cash paid to employees for salaries ............................ 47,000
Cash paid for dividends to stockholders ...................... 5,000
Cash paid for supplies ............................................ 23,000
Required:
1. Calculate the cash provided/used for each cash flow category.
2. Comment on the creditworthiness of Walters, Inc.