The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Texas Corporation for calendar year 2011.
(1) Use this information to prepare a complete statement of cash flows for year 2011. The cash provided or used by operating activities should be reported using the direct method.
(2) Refer to the statement of cash flows prepared for part 1 to answer the following questions a through d:
(a) Which section €” operating, investing, or financing €” shows the largest cash
(i) Inflow and
(ii) Outflow?
(b) What is the largest individual item among the investing cash outflows?
(c) Are the cash proceeds larger from issuing notes or issuing stock?
(d) Does the company have a net cash inflow or outflow from borrowingactivities?

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Cash Balance, Dec. 31, 2010 Receipts from customers Receipts from dividends...208,400 Payments for wages. Receipts from land sale.220,000 Payments for rent Receipts from machinery sale . 710,000 Payments for interest Receipts from issuing stock1,540,000 Payments for taxes Receipts from borrowing 0135,200 merchandise dise...1,590,000 320,000 218,000 450,000 2,236,000 Payments for long-term investments...2,260,000 386,000 500,000 2,600,000 Payments for machinery.. Payments for note payable Payments for dividends... Payments for treasury stock . 218,000 Balance, Dec. 31, 2011