Using financial statements to prepare a statement of cash flows—

direct method The following financial statements were drawn from the records of Norton Materials, Inc.

Additional Information 1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash.
2. Paid a $7,200 cash dividend to owners.
Required Use the T-account method to analyze the data and prepare a statement of cash flows, using the direct method.