Prepare a statement of cash flows-direct method

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Reference no: EM13747761

(Learning Objective 4: Prepare a statement of cash flows—direct method) Paloma Horse Farm, Inc., began 2012 with cash of $100,000. During the year, Paloma earned service revenue of $594,000 and collected $580,000 from customers. Expenses for the year totaled $410,000, with $400,000 paid in cash to suppliers and employees. Paloma also paid $144,000 to purchase equipment and a cash dividend of $46,000 to stockholders. During 2012, Paloma borrowed $22,000 by issuing a note payable. Prepare the company’s statement of cash flows for the year. Format operating activities by the direct method.

Reference no: EM13747761

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