The income statement and additional data of Rolling Hills Corporation follow:

a. Collections from customers are $14,000 more than sales.
b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d. Payments to employees are $1,500 more than salaries expense.
e. Cash payment for the acquisition of plant assets is $108,000.
f. Cash receipts from sale of land total $25,000.
g. Cash receipts from issuance of common stock total $31,000.
h. Payment of long-term notes payable is $17,000.
i. Payment of dividends is $12,000.
j. Cash balance at June 30, 2015, was $28,000; at June 30, 2016, it was $24,000.
Prepare Rolling Hills Corporation€™s statement of cash flows for the year ended June 30, 2016. Use the direct method.

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ROLLING HILLS CORPORATION Income Statement Year Ended June 30, 2016 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $229,000 107,000 122,000 S 46,000 28,000 11,000 Salaries Expense Advertising Expense Total Operating Expenses 85,000 Operating Income Other Revenues and (Expenses): 37,000 Dividend Revenue Interest Expense Total Other Revenues and (Expenses) 10,500 3,000) Net Incone Betore Income Taxes Income Tax Expense Net Income 7,500 44,500 8,000 36,500