Your friend is in business and wants your advice on preparing and interpreting the statement of cash flows for 2016. Information regarding the business is as follows:

Cash received from customers $175,000

Cash paid to vendors 75,000

Cash paid to employees 140,000

Cash paid for interest 35,000

Depreciation expense 40,000

Cash paid in acquiring equipment 375,000

Cash received from issuing bonds 250,000

Cash received from issued common stock 400,000

Beginning cash balance 95,000

Based upon the above information, prepare the statement of cash flows using the direct method