Shabnam Interiors began the year with cash of $55,000. During the year, Shabnam Interiors earned service revenue of $406,000. Cash collections for the year were $405,000. Expenses for the year were $375,000, with $360,000 of that total paid in cash. The company also used cash to purchase equipment for $85,000 and to pay a cash dividend to stockholders of $24,000. During the year, the company borrowed $58,000 cash by issuing a long-term note payable.
Requirement
Prepare the company's statement of cash flows using the direct method.