The 2006 accounting records of Eduardo Co. reveal the following transactions and events.

Instructions Prepare the cash flows from operating activities section using the direct method. (Not all of the above items will be used.)

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Payment of interest Cash sales. Receipt of dividend revenue $ 4,000 Collection of accounts receivable $170,000 38,000 Payment of salaries and wages 65,000 14.000 Depreciation expense 24,000 Payment of income taxes 15,000 Proceeds from sale of aircraft 812,000 Net income 38,000 Payment of accounts payable Purchase of equipment for cash Loss on sale of aircraft 22,000 3,000 for merchandise 90,000 Payment of dividends 14.000 Payment for land 74.000 Payment of operating expenses 20,000