The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents balance of $5,700 on January 1, 2016. Cash Received from: Customers $ 1,950 Interest on investments 225 Sale of land 125 Sale of common stock 650 Issuance of debt securities 2,050 Cash Paid for: Interest on debt 325 Income tax 85 Debt principal reduction 1,550 Purchase of equipment 4,600 Purchase of inventory 1,000 Dividends on common stock 225 Operating expenses 525

Required: Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)

Cash Received from:

Customers$1,950

Interest on investments 225

Sale of land 125

Sale of common stock 650

Issuance of debt securities 2,050

Cash Paid for:

Interest on debt 325

Income tax 85

Debt principal reduction 1,550

Purchase of equipment 4,600

Purchase of inventory 1,000

Dividends on common stock 225

Operating expenses 525