4. You are given the following transaction information for the TAL Corporation for 2011: Cash from sales to customers Cash received from issuance of TAL stock Cash received from the sale of equipment Cash received from interest earned Cash purchases of inventory Cash payments for operating expenses $130,000 50,000 4,000 4,000 50,000 20,000 Required: Prepare a statement of cash fows using the direet method for TAL Corporation for 2011. ANS: TAL Corporation Statement of Cash Flows (Direct method) For the year ending 12/31/11 Cash Receipts from Sales Interest Total cash receipts Cash payments for Inventory purchase Operating expenses Total cash payments Net cash provided (used) by operating activities Cash Flows from Investing Activities Sale of equipment Net cash provided (used) by operating activities Cash Flows from Financing Activities Cash received from the sale of TAL stock Net cash provided (used) by operating activities Net increase (decrease) in cash