Using the data from E13-21A, prepare the statement of cash flows using the direct method.

Data From E13-21A:-

Middleton Spas provides the following data for the year just ended on December 31.

Requirement:

Prepare the operating activities section of Middleton Spas’ statement of cash flows for the year just ended, using the direct method for operating cash flows.

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Payment of long-term note payable $ 4,000 Payments to employees $ 64,000 Depreciation expense $ 4,400 Proceeds from sale of land $ 40,500 Purchase of equipment with cash $ 9,500 Payment of dividends $ 11,000 Purchase of treasury stock Gain on sale of land........ Cost of goods sold. $ 12,500 Payments to suppliers. $ 65,000 $ 1,000 Increase in salaries payable $ 12,000 $108,000 Payment of income tax $ 9,500 Proceeds from issuance of common stock $ 12,500 Beginning balance, cash. Collections from customers $ 15,000 Sales revenue $153,000 $167,000