E9-13B. Calculate cash from operating activities using the direct method. (LO I, 4)
During the fiscal year ended March 31, 2008, Radio Technology Inc. engaged in the following transactions. Using the relevant transactions, prepare the cash from operating activities section of the statement of cash flows using the direct method.
a. Paid $130,000 on accounts payable related to operating expenses
b. Collected$ 185,000 on accounts receivable
c. Made cash sales of $315,000
d. Paid salaries of $40,000
e. Recorded amortization expense of $15,000
f. Declared a2-for-l stock split
g. Paid interest on loan in the amount of $21,500
h. Repaid principal of loan for $275,000
i. Sold equipment for $295,000
j. Paid dividends of $15,000
k. Purchased a new building for cash of $215,000
I. Paid operating expenses of $65,50