McCracken Horse Farms, Inc., began 2014 with cash of $ 58,000. During the year, McCracken earned service revenue of $ 694,000 and collected $ 640,000 from customers. Expenses for the year totaled $ 480,000, with $ 465,000 paid in cash to suppliers and employees. McCracken also paid $ 119,000 to purchase equipment and a cash dividend of $ 37,000 to stockholders. During 2014, McCracken borrowed $ 25,000 by issuing a note payable. Prepare the company’s statement of cash flows for the year. Format operating activities by the direct method.