04: Use the following calendar-year information to prepare Sterling Company's statement of cash flows using the direct method. All amounts are in thousand Euros (*000) Hint: Use the Reporting the statement of Cash Flows Table provided below as Guideline 280 10 Cash paid to purchase machinery 124 Cash paid for merchandise inventory 220 Cash paid for operating expenses Cash paid for interest 4 Cash received for interest Cash proceeds from sale of land 100 Cash balance at beginning of year 15 Cash balance at end of year Cash borrowed on a short-term note 25 Cash dividends paid 24 Cash received from stock issuance 57 Cash collections from customers 522 Reporting the cat of Calons CLASSIFYING ACTIVITIES IN THE STATEMENT OF CASH FLOWS OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES Cashinews from Cashflows from Cash inflows from Customers for cash sales Selling Investments in its Contributia by Collections on credit sales Selling discontinguts Ingles and beads Borrowers for interest Collecting principal on notes Iseling is negality sock Dividends reed Selling term producte assets in short-term and one-term Lawwisements debe Cashoutboste Cash outflows to Cash flows to Salaries and was Make leams to others Hopay cash ham Lenders for interest Purchase term productive assets Pay withdrwals by users Suppliers of goods and services Purchase investments in series Puy dividends to shareholders Purchase try stock Generalforses and fines NONCASH INVESTING AND FINANCING ACTIVITIES Retirement of debt by ining equity stock Conversion of preferred stock to common stock Leasing of assets in a capital lease tramation Purchase of a log-term asset by swing a note or brood Exchange of cash assets for other acash assets Purchase of incash anets by wing equity or debt