The 2010 accounting records of Spaulding Transport reveal these transactions and events.
|
Payment of interest |
$ 10,000 |
Payment of salaries and wages |
53,000 |
|
Cash sales |
48,000 |
Depreciation expense |
16,000 |
|
Receipt of dividend revenue |
18,000 |
Proceeds from sale of vehicles |
812,000 |
|
Payment of income taxes |
12,000 |
Purchase of equipment for cash |
22,000 |
|
Net income |
38,000 |
Loss on sale of vehicles |
3,000 |
|
Payment for merchandise |
105,000 |
Payment of dividends |
14,000 |
|
Payment for land |
74,000 |
Payment of operating expenses |
28,000 |
|
Collection of accounts receivable |
192,000 |
Instructions
Prepare the cash flows from operating activities section using the direct method. (Not all of the items will be used.)