Preparing a Statement of Cash Flows (Direct Method)

Use the following information about the 2016 cash flows of Mason Corporation to prepare a statement of cash flows under the direct method. Refer to Exhibit 4.3 for the appropriate format.

Cash balance, end of 2016	$12,000
Cash paid to employees and suppliers	148,000
Cash received from sale of land	40,000
Cash paid to acquire treasury stock	10,000
Cash balance, beginning of 2016	16,000
Cash received as interest	6,000
Cash paid as income taxes	11,000
Cash paid to purchase equipment	89,000
Cash received from customers	194,000
Cash received from issuing bonds payable	30,000
Cash paid as dividends	16,000

MASON CORPORATION STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2016
	Cash flows from operating activities
	Cash received from customers	$Answer
	Cash received as interest	Answer
	AnswerCash paid to employees and suppliersSale of landPayment of dividendsCash balance, beginning of 2016	Answer
	Cash paid as income taxes	Answer
	Net cash provided by operating activities	Answer
	Cash flows from investing activities
	AnswerCash paid to employees and suppliersSale of landPayment of dividendsCash balance, beginning of 2013	$Answer
	Purchase of equipment	Answer
	Net cash used by investing activities	Answer
	Cash flows from financing activities
	Issuance of bonds payable	Answer
	Acquisition of treasury stock	Answer
	AnswerCash paid to employees and suppliersSale of landPayment of dividendsCash balance, beginning of 2016	Answer
	Net cash provided by financing activities	Answer
	Net decrease in cash	Answer
	AnswerCash paid to employees and suppliersSale of landPayment of dividendsCash at beginning of year	Answer
	Cash at end of year	$Answer