The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Clarett Corporation for calendar year 2011.
(1) Use this information to prepare a complete statement of cash flows for year 2011. The cash provided or used by operating activities should be reported using the direct method.
(2) Refer to the statement of cash flows prepared for part 1 to answer the following questions a through d:
(a) Which section€”operating, investing, or financing€”shows the largest cash
(i) Inflow and
(ii) Outflow?
(b) What is the largest individual item among the investing cash outflows?
(c) Are the cash proceeds larger from issuing notes or issuing stock?
(d) Does the company have a net cash inflow or outflow from borrowing activities?

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Balance, Dec. 31, 2010 251,700 7,074,800 Payments for merchandise. 2,934,822 .. 1,018,882 586,964 398,693 830,610 3,130,900 Payments for long-term investments. 2,295,200 905,787 519,208 398,693 from dividend s 876,180 Payments for wages... 3 76 Payments forre 397,676 Payments for rent.. 606,826 Payments for interest Receipts from land sae. Receipts from machinery sale. Receipts from issuing stock.... 2,846,224 Payments for taxes Receipts from borrowing 1,795,388 Payments for machinery Payments for note payable Payments for dividends Payments for treasury stock Balance, Dec. 3, 2011