The 1998 accounting records of Flypaper Airlines reveal these transactions and events:

\section*{Instructions}
Prepare the cash flows from operating activities section using the direct method. (Not all of the items will be used.)

Transcribed Image Text:

Payment of interest $ 6,000 Cash sales 48,000 Collection of accounts receivable Payment of salaries and wages $180,000 68,000 Receipt of dividend revenue 14,000 Depreciation expense 16,000 Payment of income taxes 16,000 Proceeds from sale of aircraft 812,000 Net income 38,000 Purchase of equipment for cash 22,000 Payment of accounts payable Loss on sale of aircraft 3,000 for merchandise 90,000 Payment of dividends 14,000 Payment for land 74,000 Payment of operating expenses 20,000