1. [Cash flows: CFA adapted] Cash flow data of Palomba Pizza Stores for the year ended December 31. 2000 follow: Cash payment of dividends $(35,000) Acquisition of Naples' Pizza (14.000) Cash payments for interest (10,000) Cash payments for salaries (45.000) Sale of equipment 38.000 Retirement of common stock (25,000) Purchase of equipment (30.000) Cash payments to suppliers (85.000) Cash collections from customers 250.000 Cash at December 31, 1999 50,000

a. Prepare a statement of cash flows for Palomba for 2000. Classify cash flows as required by SFAS 95.