SP5-1: STATEMENT OF CASH FLOWS PROBLEM (HS) Dorian Quinn, President of James River Enterprises, was Balance Sheet studying their 1999 "We show a cash balance of only $5 million! How can this be when we've had a record year of sales and net income of $254 million. I think there must be an error in this account." Quinn would like a report prepared to show the sources and uses of cash during the year. The following transactions (shown in $ million) took place during 1999 a. Sales were $2,510, all on credit. Cash of $2,413 was collected from customers b. The cost of goods sold was $1,599. c. Inventory increased by $56 d. Cash payments made to suppliers e. Employees were paid $305. Accrued wages payable decreased by $24 f. Other operating expenses were $94, all paid in cash g. Interest expense, paid in cash, was $26 h. Income tax expense was $105. Cash payments for income taxes were $108 i. Depreciation was $151 j. A warehouse was were $1,653. acquired for $540 cash k, Equipment was sold for $37. Its original cost was $196, and accumulated depreciation was $159 . Common stock was issued for $28 cash m. Long term debt was retired for $25 cash n. Cash dividends of $88 were paid. Requirements: 1 - Prepare a complete statement of cash flows for James River, using the DIRECT METHOD for cash flow from operating activities