The following transactions apply to Hooper Co. for Year 1, its first year of operations:

Issued $160,000 of common stock for cash.

Provided $94,000 of services on account.

Collected $82,000 cash from accounts receivable.

Loaned $11,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 6 percent interest rate.

Paid $38,000 of salaries expense for the year.

Paid a $3,500 dividend to the stockholders.

Recorded the accrued interest on December 31, Year 1 (see item 4).

Estimated that 1 percent of service revenue will be uncollectible.

Prepare the income statement for Year 1. (Round intermediate \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Statement of Cash Flows } & \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}