Marcus Interiors began the year with cash of $50,000. During the year, Marcus Interiors earned service revenue of $402,000. Cash collections for the year were $385,000. Expenses for the year were $375,000, with $360,000 of that total paid in cash. Marcus Interiors also used cash to purchase equipment for $70,000 and to pay a cash dividend to stockholders of $28,000. During the year, Marcus Interiors borrowed $54,000 cash by issuing a note payable.
Requirement
Prepare the company's statement of cash flows using the direct method.