The accounting records for T. Houton Associates, Inc., for the year ended April 30, 2012, contain the

Question:

The accounting records for T. Houton Associates, Inc., for the year ended April 30, 2012, contain the following information:
a. Purchase of fixed assets for cash, $49,000
b. Proceeds from issuance of common stock, $45,000
c. Payment of dividends, $44,400
d. Collection of interest, $7,500
e. Payment of salaries, $95,000
f. Proceeds from sale of fixed assets, $27,000
g. Collections from customers, $609,000
h. Cash receipt of revenue, $5,500
i. Payments to suppliers, $368,500
j. Depreciation expense, $59,000
k. Proceeds from issuance of long-term notes, $39,100
l. Payments of long-term notes payable, $49,000
m. Interest expense and payments, $13,500
n. Income tax expense and payments, $43,000
o. Cash balances: April 30, 2011, $40,1 00; April 30, 2012, $110,800

Requirement
1. Prepare T. Houton Associates’ statement of cash flows for the year ended April 30, 2012. Use the direct method for cash flows from operating activities.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...