The summarized journal entries below show the total debits and credits to the Zenyatta Corporation€™s Cash account during 2014.

Required
Use the information to prepare a statement of cash flows for 2014. The cash flow from operating activities should be presented according to the direct method. In the statement, identify the entry that records each item of cash flow. Assume that the beginning balance of cash was $13,320.
Analysis Component: Consult the statement of cash flows you have just prepared and answer the following questions:
a. Of the three activity sections (operating, investing, or financing), which section shows the largest cash flow for the year 2014?
b. What was the purpose of the largest investing cash outflow in 2014?
c. Were the proceeds larger from issuing debt or equity in 2014?
d. Did the corporation have a net cash inflow or outflow from borrowing activity in2014?

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21,000 3,000 Loss on Sale of Long-Term Investments. Long-Term Investments 24,000 Sold long-term investments for cash 72,000 42,000 Machinery 96,000 18,000 Sold machinery for cash 0 51,000 Cash Paid cash dividends to shareholders 51,000 Income Taxes Payable.. . 48,000 Cash 48,000 Paid income taxes owed for the year Common Shares 22,800 Cash Purchased and retired common shares for cash 22,800