To prepare the statement of cash flows, accountants for Houton & Associates, Inc., summarized 2018 activity in the Cash account as:

Requirement

Prepare the statement of cash flows of Houton & Associates, Inc., for the year ended December 31, 2018, using the direct method for operating activities.

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Cash 13,000 Payment on accounts payable 22,000 Payment of dividends 622,400 Payment of salaries and wages 60,100 Payment of interest Payment for equipment Payment of operating expenses Payment of notes payable Payment of income tax 399,100 Beginning balance Receipts of interest Collections from customers 12,000 105,500 21,400 15,000 Issuance of common stock 46,100 77,000 17,500 23,900 | Ending balance