The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar year 2008.

(1) Use this information to prepare a complete statement of cash flows for year 2008. The cash provided

(used) by operating activities should be reported using the direct method.

(2) Refer to the statement of cash flows prepared for part 1 to answer the following questions a through d:

(a) Which section—operating, investing, or financing—shows the largest cash (i) inflow and (ii) outflow?

(b) What is the largest individual item among the investing cash outflows?

(c) Are the cash proceeds larger from issuing notes or issuing stock? (d ) Does the company have a net cash inflow or outflow from borrowing activities?AppendixLO1 

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Accounting System: Ela Ed Mann Task Ambo Qions Exports Window Hep 10x Cash Balance, Dec. 31, 2007 Receipts from customers Receipts from dividends Receipts from land sale. Receipts from machinery sale Receipts from issuing stock Receipts from borrowing. 220,000 Payments for rent 710,000 Payments for interest. 1,540,000 Payments for taxes. 135,200 6,000,000 Payments for merchandise 208,400 Payments for wages. 1,590,000 550,000 320,000 218,000 450,000 2,600,000 Payments for machinery. 2,236,000 Payments for long-term investments 2,260,000 Payments for note payable 386,000 Payments for dividends 500,000 Payments for treasury stock. 218,000 Balance, Dec. 31, 2008 ? Genera Ph Ledger Inventory Company