Jackson Ski Haus Statement of Cash Flows for the year ending December 31, 2014 (Direct Method): Cash Flows from Operating Activities: Cash received from customers: $540,200 Cash paid for operating expenses: ($94,000) Interest paid: ($20,500) Income taxes paid: ($40,500) Net cash provided by operating activities: $385,200 Cash Flows from Investing Activities: Sale of equipment (proceeds): $5,000 Purchase of short-term investments: ($25,000) Net cash used in investing activities: ($20,000) Cash Flows from Financing Activities: Dividends paid: ($20,000) Repayment of short-term loans to bank: ($23,500) Net cash used in financing activities: ($43.500) Net decrease in cash during 2014: Decrease in Cash = Cash at end of 2013 - Cash at end of 2014 = $2.500 - X = -$1.700 X = $4.200