Determining Operating Cash FlowsDirect Method: Taser Corporations recent comparative balance sheet and income statement follow.

Additional information

1. Purchased a plant asset, $60,000; issued capital stock in full payment.

2. Purchased a long-term investment in equity securities for cash, $20,000.

3. Declared and paid cash dividend, $20,000.

4. Sold a plant asset for $10,000 cash (cost, $36,000; accumulated depreciation, $32,000).

5. Issued common stock, 1,000 shares at $11 per share cash.

Prepare the operating activities section of the statement of cash flows, using the direct method. Note: Use negative signs with amounts for cash outflows.

Balance Sheets, December 31 Prior Year Current Year \begin{tabular}{|l|r|r|} \hline Assets & & \\ \hline Cash and cash equivalents & $39,000 & $63,800 \\ \hline Accounts receivable (net) & 68,000 & 68,000 \\ \hline Merchandise inventory & 156,000 & 170,000 \\ \hline Investments, long-term & & 20,000 \\ \hline Plant assets & 337,000 & 361,000 \\ \hline Accumulated depreciation & (88,000) & (68,000) \\ \hline Total assets & $512,000 & $614,800 \\ \hline Liabilities and Stockholders' Equity & & \\ \hline Accounts payable & $42,000 & $38,000 \\ \hline Salaries payable & 3,000 & 1,000 \\ \hline Income taxes payable & 4,000 & 7,000 \\ \hline Bonds payable & 200,000 & 200,000 \\ \hline Premium on bonds payable & 8,000 & 7,400 \\ \hline Common stock, no-par & 240,000 & 311,000 \\ \hline Retained earnings & 15,000 & 50,400 \\ \hline Total liabilities and stockholders' equity & $512,000 & $614,800 \\ \hline \end{tabular} Income Statement, For Year Ended December 31 Current Year \begin{tabular}{|l|r|} \hline Sales revenue & $240,000 \\ \hline Cost of goods sold & (96,000) \\ \hline Depreciation expense & (12,000) \\ \hline Salaries expense & (44,000) \\ \hline Income tax expense & (20,000) \\ \hline Interest expense & (14,000) \\ \hline Other expenses & (4,600) \\ \hline Gain on sale of plant assets & 6,000 \\ \hline Net income & $55,400 \\ \hline \end{tabular} Cash Flows from Operating Activities \begin{tabular}{|l|r|} \hline Collections from customers & $240,000 \\ \hline Payments to suppliers & 0 \\ \hline Payments for salaries & 0 \\ \hline Payments for income taxes & 0 \\ \hline Payments for interest & 0 \\ \hline Other expenses & 0 \\ \hline Net cash provided (used) by operating activities & $ \\ \hline \end{tabular}