Cash Flow Statement Preparation (Direct Method):

Prepare a cash flow statement for Company XYZ for the year ended December 31, 20XX, using the direct method. The following information is available:

• Cash received from customers: $200,000
• Cash paid to suppliers: $120,000
• Cash paid for operating expenses: $50,000
• Interest received: $5,000
• Interest paid: $7,000
• Income taxes paid: $10,000

Requirements:

1. Determine the net cash provided by operating activities.
2. Identify the net cash used in investing activities.
3. Calculate the net cash provided by financing activities.