Question - Paloma Horse Farm, Inc., began 2017 with cash of $100,000. During the year, Paloma earned service revenue of $594,000 and collected $580,000 from customers. Expenses for the year totaled $410,000, with $400,000 paid in cash to suppliers and employees. Paloma also paid $144,000 to purchase equipment and a cash dividend of $46,000 to stockholders. During 2017, Paloma borrowed $22,000 by issuing a note payable.
Prepare the company's Statement of Cash Flows for the year. Format operating activities by the direct method.