Issued 46,000 shares of capital stock in exchange for $460,000 in cash.

Purchased equipment at a cost of $72,000. $26,000 cash was paid and a note payable was signed for the balance owed.

Purchased inventory on account at a cost of $122,000. The company uses the perpetual inventory system.

Credit sales for the month totaled $136,000. The cost of the goods sold was $86,000.

Paid $6,600 in rent on the warehouse building for the month of March.

Paid $7,600 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.

Paid $86,000 on account for the merchandise purchased in 3.

Collected $71,000 from customers on account.

Recorded depreciation expense of $2,600 for the month on the equipment.

how is a statement of cash flows created, using the direct method to present cash flows from operating activities. Assume that the cash balance at the beginning of the month is $56,000.