The summarized journal entries below show the total debits and credits to the Zebra Corporation?s Cash account during 2020.

Required

Use the information to prepare a statement of cash flows for 2020. The cash flow from operating activities should be presented according to the direct method. In the statement, identify the entry that records each item of cash flow. Assume that the beginning balance of cash was $13,320.

Analysis Component: Consult the statement of cash flows you have just prepared and answer the following questions:

a. Of the three activity sections (operating, investing, or financing), which section shows the largest cash flow for the year 2020?

b. What was the purpose of the largest investing cash outflow in 2020?

c. Were the proceeds larger from issuing debt or equity in 2020?

d. Did the corporation have a net cash inflow or outflow from borrowing activity in 2020?

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Cash 144,000 a. Common Shares 144,000 Issued common shares for cash. b. Cash 240,000 Notes Payable Borrowed cash with a note payable. Merchandise Inventory 240,000 48,000 C. Cash. 48,000 Purchased merchandise for cash. d. Accounts Payable. Cash 120,000 120,000 Paid for credit purchases of merchandise. Wages Expense. 60,000 e. Cash. 60,000 Paid wages to employees. Rent Expense f. 42,000 Cash. 42,000 Paid rent for bulidings. Cash 300,000 g. 300,000 Sales. Made cash sales to customers. h. Cash 180,000 Accounts Recelvable. 180,000 Collected accounts from credit customers. Machinery. 213,600 Cash. 213,600 Purchased machinery for cash. Long-Term Investments 216,000 Cash 216,000 Purchased long-term Investments for cash. Interest Expense. Notes Payable k. 21,600 38,400 Cash. 60,000 Paid notes and accrued interest. Cash L. 10,640 Dividend Income. 10,640 Collected dividends from Investments. Cash. 21,000 m. Loss on Investments. 3,000 Investments. 24,000 Sold investments for cash. Cash. Accumulated Depreciation, Machinery Machinery. Galn on Sale of Machinery. Sold machinery for cash. Common Dividend Payable. 72,000 П. 42,000 96,000 18,000 51,000 O. Cash. 51,000 Paid cash dividends to shareholders. Income Taxes Payable. 48,000 P- Cash. 48,000 Paid income taxes owed for the year. Common Shares. 22,800 Cash 22,800 Purchased and retired common shares for cash.