Operating Cash Flows. White Company has completed preparation of the income statement and the balance sheet at yearend, December 31. 1998. A statement of cash flows must be developed. The following data are available:

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Prepare a statement of cash flows. Comment on the major cash flows

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12/31/1998 12/31/1997 (a) From the balance sheet: Cash: Accounts receivable Inventory.... $17,000 $ 8,000 17,000 12,000 15,000 18,000 Accounts payable. Notes payable, short term 10,000 12,000 18,000 13,000 (b) From the income statement for 1998: Net income Depreciation expense. $20,000 6,000 (c) From other records: Purchase of long-term investment $15,000 Payment of long-term note 5,000 Sale of capital stock.. 10,000 Payment of cash dividend. 8,000 Purchase of land, issued capital stock. 25,000