Medway Spas provides the following data for the year just ended December 31.

Requirement
Prepare the operating activities section of Medway Spas€™ statement of cash flows for the year just ended, using the direct method for operating cashflows.

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Payment of note payable6 Depreciation expense. Purchase of equipment. Purchase of treasury stock Gain on sale of land. Cost of goods sold.$ Proceeds from issuance of common stock.13,000 Collections from customers.unicncvn$148,000 Beginning balance, cash S 6,000 Payments to employees 5 4,700 Proceeds from sale of land.... s 9,000 Payment of cd 11000 Payments to suppliersaumas 64,000 S 1,500 1 10,000 Payment of income tax 62,000 $ 42,500 13,500 Payment of dividends Increase in salaries payable 11,500 8,000 $ 12,000 Salerevenue. $170,000