The 1997 accounting records of Flypaper Airlines reveal the following transactions and events.

\section*{Instructions}
Prepare the cash flows from operating activities section using the direct method. (Not all of the above items will be used.)

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Payment of interest Cash sales $ 6,000 48,000 Receipt of dividend revenue 14,000 Collection of accounts receivable Payment of salaries and wages Depreciation expense $180,000 68,000 16,000 Payment of income taxes 16,000 Proceeds from sale of aircraft 812,000 Net income 38,000 Purchase of equipment for cash 22,000 Payment of accounts payable for Loss on sale of aircraft 3,000 merchandise 90,000 Payment of dividends 14,000 Payment for land 74,000 Payment of operating expenses 20,000