Marilyn Miller began the second year of her floral business with $12,000 is cash in her bank account. Using the information below, all of which occurred during Year 2, prepare a statement of cash flow for Marilyn. Evaluate her cash management strategy during Year 2.

1. Sold an equity interest in the business for $ 13,000 cash.

2. Generated revenue from floral sales of $20,000, collecting all but $5,000.

3. Incurred operating expenses totaling $9,000, of which $2,000 remained unpaid at the end of Year 2.

4. Purchased new store equipment for $5,000, with a down payment of $2,500 cash and signing a note payable for $2,500.

5. Paid shareholders a cash dividend of $2,800.