The accounting staff of Lambert Company has assembled the following information for the year ended December 31, 2015:
| Cash sales |
825,000 |
| Credit sales |
2,500,000 |
| Collections on accounts receivable |
2,200,000 |
| Cash transferred from the money market fund to the general bank account |
250,000 |
| Interest and dividends received |
100,000 |
| Purchases (all on account) |
1,800,000 |
| Payments on accounts payable to merchandise suppliers |
1,500,000 |
| Cash payments for operating expenses |
1,050,000 |
| Interest paid |
180,000 |
| Income taxes paid |
95,000 |
| Loans made to borrowers |
500,000 |
| Collections on loans (excluding receipts of interest) |
260,000 |
| Cash paid to acquire plant assets |
3,100,000 |
| Book value of plant assets sold |
660,000 |
| Loss on sales of plant assets |
80,000 |
| Proceeds from issuing bonds payable |
2,500,000 |
| Dividends paid |
120,000 |
| Cash and cash equivalents, Jan. 1 |
512,000 |
a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities. (List any deduction in cash and cash outflows as negative amounts.)