Shadi Interiors began the year with cash of $55,000. During the year, Shadi Interiors earned service revenue of $404,000. Cash collections for the year were $400,000. Expenses for the year were $365,000, with $350,000 of that total paid in cash. The company also used cash to purchase equipment for $70,000 and to pay a cash dividend to stockholders of $25,000. During the year, the company also borrowed $44,000 cash by issuing a long-term note payable.
Requirement
Prepare the company's statement of cash flows using the direct method.