Problem:
The 2002 accounting records of Winona Ryder Co. reveal the following transactions and events.
Payment of interest $6,000
Cash sales 38,000
Receipt of dividend revenue 14,000
Payment of income taxes 15,000
Net income 38,000
Payment of accounts payable for merchandise 90,000
Payment for land 74,000
Collection of accounts receivable $180,000
Payment of salaries and wages 65,000
Depreciation expense 18,000
Proceeds from sale of aircraft 812,000
Purchase of equipment for cash 22,000
Loss on sale of aircraft 3,000
Payment of dividends 14,000
Payment of operating expenses 20,000
Instructions:
Prepare the cash flows from operating activities section using the direct method. (Not all of the above items will be used.)