Franklin Company engaged in the following transactions for the year 2016. The beginning cash balance was $27,900 and the ending cash balance was $63,658. Sales on account were $283,800. The beginning receivables balance was $93,900 and the ending balance was $76,200. Salaries expense for the period was $58,710. The beginning salaries payable balance was $4,113 and the ending balance was $2,350. Other operating expenses for the period were $120,370. The beginning other operating expenses payable balance was $4,780 and the ending balance was $9,029. Recorded $19,830 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $14,220 and $34,050, respectively. The Equipment account had beginning and ending balances of $207,270 and $240,770, respectively. There were no sales of equipment during the period. The beginning and ending balances in the Notes Payable account were $45,700 and $142,700, respectively. There were no payoffs of notes during the period. There was $6,448 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,388 and $925, respectively. The beginning and ending Merchandise Inventory account balances were $90,270 and $108,324, respectively. The company sold merchandise with a cost of $151,761 (cost of goods sold for the period was $151,761). The beginning and ending balances in the Accounts Payable account were $9,790 and $11,846, respectively. The beginning and ending balances in the Notes Receivable were $5,400 and $10,000, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period. "The beginning and ending balances in the Common Stock account were $99,000 and $121,000, respectively. The increase was caused by the issue of common stock for cash. Land had beginning and ending balances of $49,000 and $37,111, respectively. Land that cost $11,889 was sold for $8,770, resulting in a loss of $3,119. The tax expense for the period was $7,880. The Taxes Payable account had a $860 beginning balance and an $792 ending balance. The Investments account had beginning and ending balances of $20,100 and $23,800, respectively. The company purchased investments for $18,200 cash during the period, and investments that cost $14,500 were sold for $22,000, resulting in a $7,500 gain.

Required

Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume Franklin Company uses the direct method for showing net cash flow from operating activities.

Prepare a statement of cash flows using the direct method.

( please put into tabs )