Preparing the direct method statement of cash flows Use the data in Short Exercise S14A-12 and your results. Prepare the business’s complete statement of cash flows for the year ended June 30, 2018, using the direct method for operating activities

Cash flows from operating activities

Receipts:

Collection from customers

$188,000

Payments:

To suppliers

($115,000)

To employees

($66,000)

Net cash provided by operating activities

$7,000

Amy’s Learning Centre

Statement of cash flows

Year ended 30 June, 2018

Cash flows from operating activities

$7,000

Cash flows from investing activities

Cash purchase of equipment

($39,000)

Cash receipt from sale of land

$58,000

Net cash used for investing activities

$19,000

Cash flows from financing activities

Cash payment of dividends

($7,500)

Cash payment of notes payable

($34,000)

Cash receipt from issuance of stock

$22,000

Net cash provided by financing activities

($19,500)

Net Increase/(Decrease) in cash

$6,500

Cash balance, 30 June, 2017

$41,000

Cash balance, 30 June, 2018

$47,500