Sedlak Interiors began the year with cash of $51,000. During the year, Sedlak Interiors earned service revenue of $410,000. Cash collections for the year were $380,000. Expenses for the year were $360,000, with $345,000 of that total paid in cash. Sedlak Interiors also used cash to purchase equipment for $75,000 and to pay a cash dividend to stockholders of $35,000. During the year, Sedlak Interiors also borrowed $42,000 cash by issuing a note payable.
Requirement
Prepare the company's statement of cash flows using the direct method.