04 S11-12. (Learning Objective 4: Prepare a statement of cash flows-direct method) Tally-Ho Horse Farms, Inc., began 2018 with cash of $170,000. During the year, Tally-Ho earned service revenue of $595,000 and collected $590,000 from customers. Expenses for the year totaled $395,000, with $380,000 paid in cash to suppliers and employees. Tally-Ho also paid $134,000 to purchase equipment and paid a cash dividend of $55,000 to stockholders. During 2018, Tally-Ho borrowed $20,000 by issuing a note payable. Prepare the company's statement of cash flows for the year ending December 31, 2018. Format operating activities using the direct method