STATEMENT OF CASH FLOWS Walters, Inc. began operations on January 1, 2009. The following information relates to Walters’ cash flows during 2009.

Cash received from owners $200,000 Cash paid for purchase of land and building 129,000 Cash paid for advertising 21,000 Cash received from customers 131,000 Cash paid to purchase machine $ 32,000 Cash paid to employees for salaries 47,000 Cash paid for dividends to stockholders 5,000 Cash paid for supplies 23,000 Required:

Calculate the cash provided/used for each cash flow category.

Comment on the creditworthiness of Walters, Inc.

Exercise