Medway Spas provides the following data for the year just ended December 31.

Requirement
Prepare the operating activities section of Medway Spas€™ statement of cash flows for the year just ended, using the direct method for operating cashflows.

Payment of note payable6 Depreciation expense. Purchase of equipment. Purchase of treasury stock Gain on sale of land. Cost of goods sold.$ Proceeds from issuance of common stock.13,000 Collections from customers.unicncvn$148,000 Beginning balance, cash S 6,000 Payments to employees 5 4,700 Proceeds from sale of land.... s 9,000 Payment of cd 11000 Payments to suppliersaumas 64,000 S 1,500 1 10,000 Payment of income tax 62,000 $ 42,500 13,500 Payment of dividends Increase in salaries payable 11,500 8,000 $ 12,000 Salerevenue. $170,000