Reference no: EM132635825

Problem - Major Company has the following calendar-year information:

Cash paid for merchandise inventory $220,000

Cash paid for interest on notes payable 5,000

Cash received from sale of land 100,000

Cash paid for principal on notes payable 15,000

Cash paid for operating expenses 280,000

Cash paid to purchase equipment 125,000

Cash received from customers 535,000

Cash received from stock issuance 50,000

Cash borrowed on a long-term note payable 25,000

Cash paid for dividends to shareholders 55,000

Cash balance at beginning of year 30,000

Cash balance at end of year 40,000

Required - Prepare a COMPLETE statement of cash flows for Major Company using the direct method. Be sure to show cash inflows as positive amounts and cash outflows as negative amounts.