Problem 11-5 The owner of a small business has asked you to where his firm's cash came from and how it was used this year. He gives you the following information based on the Cash account in his general ledger: prepare a statement that will show him Balance at beginning of year S 3,450 34,500 345 3,105 27,600 69,000 Collection of accounts receivable Interest on savings account Sale of old machine Cash sales Total Payment on vendor accounts Cash purchase of supplies Cash purchase of inventory Down payment on nevw Rent payments Utilities Interest payment Other miscellaneous expenses Payment on debt Part-time help 17,250 345 17,250 3,450 8,625 2,070 1,035 1,725 3,450 6,900 62,100 S 6,900 Balance at end of year In addition, the following is available from company records 1. Sales were $61,410 for the year 2. The Accounts Receivable balance decreased by $690 3. Cash operating expenses totaled $54,165 (including cost of sales, supplies, rent, utili- ties, part-time help, and other miscellaneous expenses). 4. Accounts Payable decreased by a net of $2,760 during the year 5. The Inventory balance remained constant throughout the year 6. Depreciation of $1,725 was taken this year. Required Prepare a cash flow statement using the direct method