Reference no: EM13378979

The following summary transactions occurred during 2011

Cash Received from:

Customers                                                $380,000

Interest on note receivable                         6,000

Principal on note receivable                        50,000

Sale of investment                                         30,000

Proceeds from note payable                      100,000

Cash Paid for :

Purchase of inventory                                    160,000

Interest on note payable                                    5,000

Purchase of equipment                                  85,000

Salaries to employees                                    90,000

Principal on note payable                              25,000

Payment of dividends to shareholders        20,000

The balance of cash and cash equivalent at the beginning of 2011 was $17,000

Required:

• Prepare a statement of cash flows for 2011 .Use the direct method for reporting operating activities, refer to the above situation.