The accounting records for L. Harper Associates, Inc., for the year ended September 30, 2012, contain the

Question:

The accounting records for L. Harper Associates, Inc., for the year ended September 30, 2012, contain the following information:
a. Purchase of fixed assets, $58,400
b. Proceeds from issuance of common stock, $60,000
c. Payment of dividends, $46,400
d. Collection of interest, $8,500
e. Payments of salaries, $88,000
f. Proceeds from sale of fixed assets, $30,000
g. Collections from customers, $625,000
h. Cash receipt of revenue, $4,400
i. Payments to suppliers, $371,300
j. Depreciation expense, $58,000
k. Proceeds from issuance of long-term notes, $22,300
l. Payments of long-term notes payable, $43,000
m. Interest expense and payments, $12,500
n. Income tax expense and payments, $39,000
o. Cash balance: September 30, 2011, $39,300; September 30, 2012, $130,900

Requirement
1. Prepare L. Harper Associates’ statement of cash flows for the year ended September 30, 2012. Use the direct method for cash flows from operating activities.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...