Reference no: EM132492359

Your Company, Inc., had a cash balance on December 31, 2011, of $52,000. Its net income for 2011 was $468,000. Its 2012 transactions affecting income or cash were:

a. Cash collections from customers were $1,850,000.

b. Cash payments on trade accounts payable was $800,000.

c. Salaries and wages: paid in cash was $250,000.

d. Interest expense, paid in cash, was $15,000.

e. Other expenses, paid in cash, were $150,000.

f. Income taxes, paid in cash, were $40,000.

g. Purchased plant and facilities for $500,000, all cash.

h. Issued debt for $150,000 cash.

i. Paid cash dividends to common stockholders of $9,000 and $14,000 to preferred stockholders.

Question 1: Give a cash flow statement using the direct method for this firm.