Reference no: EM132692542

The following events occurred in April for Main Squeeze.

1. You put $3,000 cash into the company and signed over your car (with a value of $5,000). In exchange the company issued 8,000 shares to you.
2. Purchased a lemonade stand/trailer paying $600 cash on signing and financing the remainder with a loan over 5 years. The stand's purchase price is $6,000.
3. Entered into a 5-year seasonal lease for prime boardwalk space with the city of saint john. Payments are $500 monthly from May to September.
4. Purchased a new juicer machine for $1,500 cash, and a water filtration system for $800 signing a short term note payable due in 4 months,
5. Ordered $500 worth of inventory of (lemons, sugar and cups) to be received May 3.
6. Hired a part-time employee for $1,500 per month who will start in May.

The remaining transactions occurred over the rest of the summer (May through September);

1. Paid for $260 worth of advertisements all of which ran during the summer.
2. Sold $10,920 worth of lemonade, receiving $9,600 in cash with the rest owed by customers from special catering events.
3. Paid $500 for inventory ordered in May, and ordered $3,200 more inventory throughout the season of which all was paid for except $450 outstanding at the end of 
4. Made monthly lease payments of $500 from May to September.
5. Paid $850 on note payable, $50 of which was interest.
6. Paid a part-time employee $1,500 per month for May, June, July, and August. September pay is still outstanding. 
7. Paid deposit for next years lease of $250
8. Sold prepaid gift cards totaling $650 to customers to use the next season.
   

Problem 1: The transactions above have already been recorded in the General Journal. Using this information, please create, in good form, a cash flow statement, using the direct method, for the year ended December 31, 2021.