(Appendix 11A) Preparing a Statement of Cash Flows-Direct Method The controller of Norstrom Software Corp. provides the following information as the basis for a statement of cash flows:

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1. Calculate the net cash provided (used) by operating activities.
2. Calculate the net cash provided (used) by investing activities.
3. Calculate the net cash provided (used) by financing activities.

Exercise

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Cash collected from customers $785,400 Income tax paid $ 58,300 Cash paid for interest 22,100 Payment of dividends 35,000 Cash paid to employees and other Principal payments on mortgage suppliers of goods and services Cash paid to suppliers of merchandise 221,750 payable 60,000 395,540 Principal payments on long-term debt 22,000 Cash received from the issuance of Proceeds from the issuance of long-term debt 40,000 common shares 85,000 Cash received from disposal of Purchase of equipment 120,000 equipment 42,500 Purchase of long-term investments 75,800 Cash received from sale of long-term investments 71,400