E2-12 (Preparing a statement of cash flows) From the following transactions prepare a statement of cash flows for Lana and Sons in the proper form. The company began the year with a cash balance of $13,000. Describe and eval¬ uate the company’s cash management activities during the year. 1. The stockholders contributed $7,000 in cash. 2. Performed services for $5,000, receiving $4,000 in cash and a $1,000 receivable. 3. Incurred expenses of $4,000; paid $3,000 in cash and $1,000 are still payable. 4. Purchased machinery for $10,000; paid $3,000 in cash and signed a long-term note payable for the remainder. 5. Paid the stockholders a $1,500 dividend. (Preparing a statement of cash flows)