Reference no: EM131763588

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.

a) state the problem you've chosen and what it is asking, the data being given

b) Attach you excel workup showing how you solved, along with commentary on what you did, why set up as you did, observations of the work and how it relates to the equity section of a company's financials

c) What does it mean in relation to the context of the problem and what it was asking