Matthew Interiors began the year with cash of $ 51,000. During the year, Matthew Interiors earned service revenue of $ 408,000. Cash collections for the year were $ 395,000. ­Expenses for the year were $ 390,000, with $ 375,000 of that total paid in cash. The ­company also used cash to purchase equipment for $ 60,000 and to pay a cash dividend to stockholders of $ 25,000. During the year, the company borrowed $ 56,000 cash by issuing a note payable.

Requirement
Prepare the company’s statement of cash flows using the direct method.