Use the data in Short Exercise 16-12 to prepare Little People Learning Center's (LPLC) statement of cash flows for the year ended June 30, 2005. LPI.C uses the direct method for operating activities. Use Exhibit 16A-3, page 830 , as a guide, but you may stop after determining the net increase (or decrease) in cash.

Exercise 16-12

Little People Learning Center (LPLC) has assembled the following data for the year ended June 30, 2005.

Prepare the operating activities section of LPLC's statement of cash flows for the year ended June 30, 2005. LPLC uses the direct method for operating cash flows. (Exhibit 16 A-3)

Exhibit 16 A-3

Payments to suppliers...... Purchase of equipment. $110,000 40,000 Payments to employees..... 70,000 Payment of note payable. 30,000 Payment of dividends........ 6,000 Cash receipt from issuance of stock.............. 20,000 Collections from customers. 200,000 Cash receipt from sale of land.. 60,000