The following summary transactions occurred during 2011
Cash Received from:
Customers $380,000
Interest on note receivable 6,000
Principal on note receivable 50,000
Sale of investment 30,000
Proceeds from note payable 100,000
Cash Paid for :
Purchase of inventory 160,000
Interest on note payable 5,000
Purchase of equipment 85,000
Salaries to employees 90,000
Principal on note payable 25,000
Payment of dividends to shareholders 20,000
The balance of cash and cash equivalent at the beginning of 2011 was $17,000
Required:
- Prepare a statement of cash flows for 2011 .Use the direct method for reporting operating activities, refer to the above situation.