Additional Information 1. Accounts receivable increased by $60,000. 2. Accrued interest receivable decreased by $2,000. 3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreased by $16,000. 4. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities for operating expenses decreased by $8,000. 5. The liability for accrued interest payable increased by $4,000 during the year. 6. The liability for accrued income taxes payable decreased by $14,000 during the year. 7. The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts. Page 614 Debit Entries Credit Entries Marketable Securities Notes Receivable (cash loans made to borrowers) Plant Assets (see paragraph 8) Notes Payable (short-term borrowing) Capital Stock Additional Paid-in Capital-Capital Stock Retained Earnings (see paragraph 9) $ 60,000 44,000 500,000 92,000 $ 38,000 28,000 36,000 82,000 20,000 160,000 260,000 120,000 8. The $36,000 in credit entries to the Plant Assets account is net of any debits to Accumulated Depreciation when plant assets were retired. The $36,000 in credit entries represents the book value of all plant assets sold or retired during the year. 9. The $120,000 debit to Retained Earnings represents dividends declared and paid during the year. The $260,000 credit entry represents the net income shown in the income statement. 10. All investing and financing activities were cash transactions. 11. Cash and cash equivalents amounted to $244,000 at the beginning of the year and to $164,000 at year-end. Instructions a. Prepare a statement of cash flows for the current year. Use the direct method of reporting cash flows from operating activities. Place brackets around dollar amounts representing cash outflows. Show separately your computations of the following amounts. 1. Cash received from customers. 2. Interest received. 3. Cash paid to suppliers and employees. 4. Interest paid. 5. Income taxes paid. 6. Proceeds from sales of marketable securities. 7. Proceeds from sales of plant assets. 8. Proceeds from issuing capital stock