To prepare the statement of cash flows, accountants for H. Laurie, Inc., summarized 2010 activity in the Cash account as follows:

Requirement

1. Prepare the statement of cash flows of H. Laurie, Inc., for the year ended December 31, 2010, using the direct method for operating activities.

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Cash Beginning balance Receipts of interest Collections from customers 91,700 Payment on accounts payable 347,400 15,100 Payment of dividends 30,000 492,300 Payment of salaries and wages 63,500 Issuance of common stock 90,000 Payment of interest 21,100 Payment for equipment 11,000 Payment of operating expenses 21,100 Payment of notes payable 77,000 Payment of income tax 18,900 Ending balance 99,100