Question: Preparation of a Statement of Cash Flows Denali Ale Company is a microbrewery in Anchorage. By the end of 20X1, the company's cash balance had dropped to $12,000, despite net income of $239,000 in 20X1. Its transactions affecting income or cash in 20X1 were as follows (in thousands):
1. Sales were $3,003, all on credit. Cash collections from customers were $2,890.
2. The cost of items sold was $2,096.
3. Inventory increased by $56.
4. Cash payments on trade accounts payable were $2,130.
5. Payments to employees were $305; accrued wages payable decreased by $24.
6. Other operating expenses, all paid in cash, were $105.
7. Interest expense, all paid in cash, was $26.
8. Income tax expense was $105; cash payments for income taxes were $107.
9. Depreciation was $151.
10. A warehouse was acquired for $540 cash.
11. Equipment was sold for $37 cash; original cost was $196, accumulated depreciation was $159.
12. Received $28 for issue of common stock.
13. Retired long-term debt for $21 cash.
14. Paid cash dividends of $89. Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.