Statement of Cash Flows

Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows:

Net sales	$765,000
Cost of goods sold	550,000
Gross profit	$215,000
Operating expenses	30,000
Income before taxes	$185,000
Income tax expense	65,000
Net income	$120,000

Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, was as follows:

	20-2		20-1
Cash		$60,000		$20,000
Accounts receivable		70,000		100,000
Merchandise inventory		80,000		125,000
Accounts payable		55,000		90,000

The following additional information was obtained from Zowine's financial statements and auxiliary records for the year ended December 31, 20-2:

Acquired a new warehouse	$120,000
Bought new warehouse equipment	80,000
Issued a note to the bank	40,000
Issued additional common stock:
Par value	50,000
Paid-in capital in excess of par	20,000
Declared and paid cash dividends	30,000

Required:

Prepare a statement of cash flows for Zowine for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Prepare a statement of cash flows for Zowine for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Zowine Company Statement of Cash Flows For Year Ended December 31, 20-2

Cash flows from operating activities:
Accounts receivableCash dividendsNet incomeNote payable	$- Select -
Adjustments for changes in current assets and liabilities related to operating activities:
Decrease in accounts receivableIncrease in accounts receivableIssued note payablePurchased warehouse equipment	- Select -
Decrease in merchandise inventoryIncrease in merchandise inventoryIssued common stockPurchased warehouse	- Select -
Decrease in accounts payableIncrease in accounts payableIssued note payablePaid cash dividends	- Select -
Net cash provided by operating activities		$fill in the blank 16135606fff401c_9
Cash flows from investing activities:
Increase in accounts receivableIssued common stockIssued note payablePurchased warehouse	$- Select -
Decrease in merchandise inventoryIssued note payablePaid cash dividendsPurchased warehouse equipment	- Select -
Total cash used by investing activities		fill in the blank 16135606fff401c_14
Cash flows from financing activities:
Decrease in accounts receivableIncrease in accounts payableIssued note payablePurchased warehouse	$- Select -
Decrease in accounts payableIncrease in merchandise inventoryIssued common stockPurchased warehouse equipment	- Select -
Decrease in accounts receivableIncrease in merchandise inventoryPaid cash dividendsPurchased warehouse	- Select -
Net cash provided by financing activities		fill in the blank 16135606fff401c_21
Net decrease in cashNet increase in cash		$- Select -
Cash, January 1, 20-2		fill in the blank 16135606fff401c_24
Cash, December 31, 20-2