64. STATEMENT OF CASH FLOWS The income statement and additional data of Aggieland Computing Company follow: Aggieland Computing Company Income Statement Year Ended September 30, 20x2 $237,000 Revenues: Sales revenue..... Expenses: Cost of goods sold. Salary expense.... Depreciation expense. Rent expense... Interest expense. Income tax expense. Net income.... 103,000 45,000 29,000 11,000 2,000 9.000 199.000 $38.000 a. b. Additional data during fiscal year 20x2: Collections from customers were $7,000 more than sales. Payments to suppliers were $5,000 less than the sum of cost of goods sold plus rent expense. Payment to employees were $1,000 more than salary expense. d. Interest expense and income tax expense equal their cash amounts. Acquisition of equipment is $116,000. Of this amount, $101,000 was paid in cash, $15,000 by signing a long-term note payable. Aggieland sold no equipment during fiscal year 20x2. f Proceeds from sales of land, $14,000. Proceeds from issuance of common stock, $35,000. Payment of long-term note payable, $20,000. i. Payment of dividends, $10,000. j. Decrease in cash balance, $4,000. 1. 2. Prepare Aggieland Computing Company's statement of cash flows and accompanying schedule of noncash investing and financing activities. Report operating activities by the direct method. Evaluate Aggieland Computing Company's cash flows for the year. In your evaluation, mention all three categories of cash flows (operating, investing, and financing), and give the reason for your evaluation