Selected accounts of Homestead Bakery Inc. show the following:

Required

For each account, identify the item or items that should appear on a cash flow statement prepared by the direct method. Also, state each item’s amount and where to report the item.

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Accounts Receivable Beginning balance 27,000 Cash receipts from customers 354,000 Service revenue 360,000 Ending balance 33,000 Land Beginning balance 640,000 Acquisitions paid with cash Ending balance 81,000 721,000 Long-Term Debt Payments 207,000 Beginning balance 819,000 Issuance of debt for cash 249,000 Ending balance 861,000