NITSU Manufacturing Corporation is preparing the annual financial statements for the stockholders.

A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2006: cash inflow from operating revenues, $270,000: cash expended for operating expenses, $ 1 80,000; sale of unissued NITSU stock for cash. 530,000; cash dividends declared and paid to stockholders during the year. S22.000; and payments on long-term notes payable.

$80,000. During the year, a tract of land was sold for SI 5.000 cash (which was the same price that NITSU had paid for the land in 2005), and S38.000 cash was expended for two new machines. The machines were used in the factory. The beginning-of-the-year cash balance was $63,000.

Required:

Prepare the statement of cash flows for 2006. Follow the format illustrated in the chapter.