You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the green Excel icon in the upper left hand corner of the activity. Statement of Cash Flows: Direct Method

The following information is for Leer Company:

1. Payments of interest, $5,000
2. Depreciation expense, $22,700
3. Receipt from sale of land, $3,100
4. Payments of income taxes, $6,200
5. Beginning cash balance, $16,500
6. Decrease in receivables, $7,400
7. Interest and dividends collected, $6,300
8. Payments of dividends, $5,200
9. Decrease in accounts payable, $8,600
10. Payments to suppliers and employees, $50,300
11. Receipt from issuance of common stock, $11,000
12. Collections from customers, $61,700
13. Payment for purchase of investments, $17,800
14. Net income, $73,400

Required:

Using the direct method for operating cash flows, prepare Leers statement of cash flows. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Operating Activities: Cash Inflows: Collections from customers 61,700 6,300 Interest and dividends collected Cash inflows from operating activities 68,000 -50,300 -5,000 Cash Outflows: Payments to suppliers and employees Payments of interest Payments of income taxes Cash outflows for operating activities Net cash provided by operating activities -6,200 -61,500 200 x Investing Activities: Receipt from sale of land 3.100 -17,800 Payment for purchase of investments Net cash used for investing activities 8,400 x 11,000 Financing Activities: Receipt from issuance of common stock Payment of dividends Net cash provided by financing activities -5,200 5,800 Net decrease in cash -2,400 Cash, January 1 16,500 Cash, December 31 14,100