Preparing operating activities using the direct method Happy Tot’s Learning Center has assembled the following data for the year ended June 30, 2012:
|
Payments to suppliers |
$ 117,000 |
|
Purchase of equipment |
42,000 |
|
Payments to employees |
72,000 |
|
Payment of note payable |
25,000 |
|
Payment of dividends |
7,000 |
|
Cash receipt from issuance of stock |
18,000 |
|
Collections from customers |
190,000 |
|
Cash receipt from sale of land |
60,000 |
Requirement
1. Prepare the operating activities section of the business’s statement of cash flows for the year ended June 30, 2012, using the direct method.