Question

Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method. You may omit the schedule reconciling net income and net cash provided or used by operating activities.


Cash paid to purchase machinery $ 124,000
Cash paid for merchandise inventory 220,000
Cash paid for operating expenses 280,000
Cash paid for interest 4,000
Cash received for interest 10,000
Cash proceeds from sale of land 100,000
Cash balance at beginning of year 15,000
Cash balance at end of year 77,000
Cash borrowed on a short-term note 25,000
Cash dividends paid 24,000
Cash received from stock issuance 57,000
Cash collections from customers 522,000

Answer

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