Laughlin Horse Farms, Inc., began 2016 with cash of $190,000. During the year, Laughlin earned service revenue of $591,000 and collected $570,000 from customers. Expenses for the year totaled $425,000, with $410,000 paid in cash to suppliers and employees. Laughlin also paid $137,000 to purchase equipment and a cash dividend of $45,000 to stockholders. During 2016, Laughlin borrowed $24,000 by issuing a note payable. Prepare the company's statement of cash flows for the year ending December 31, 2016. Format operating activities by the direct method.