The 2025 accounting records of Liz Ten Transport Ltd. reveal these transactions and events.

Instructions Prepare the cash flows from operating activities section using the direct method. (Not all of the items will be used.)
Calculate cash flows—direct method.

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Payment of interest Cash sales Receipt of dividend 10,000 Collection of accounts receivable 190,000 54,000 Payment of salaries and wages 55,000 Depreciation expense 16,000 revenue 18,000 Proceeds from disposal of Payment of income taxes 16,000 plant assets 12,000 Net income 38,000 Purchase of equipment for cash 22,000 Payment of accounts payable Loss on disposal of plant assets 3,000 for merchandise 115,000 Payment of dividends 14,000 Payment for land 74,000 Payment of operating expenses 28,000