Current assets: June 30, Increase 2018 2017 (Decrease) Cash $ 28,900 $ 1,600 $ 27,300 Accounts receivable 59,000 52,000 7,000 Inventories Prepaid expenses 97,700 60,500 37,200 3,700 2,100 1,600 Land 22,200 92,800 (70,600) Equipment, net Long-term investment 74,800 73,300 1,500 22,000 5,200 16,800 $ 308,300 $287,500 $ 20,800 Current liabilities: Notes payable, short-term $ 12,900 $ 19,000 $ (6,100) Accounts payable 34,300 41,500 (7,200) Income tax payable 13,400 14,800 (1,400) Accrued liabilities 14,900 9,300 5,600 Accrued liabilities 14,900 9,300 5,600 Interest payable 4,000 3,000 1,000 Salary payable 4,800 3,200 1,600 Long-term note payable Common stock Retained earnings 50,700 93,800 (43,100) 68,100 61,500 6,600 105,200 41,400 63,800 $ 308,300 $ 287,500 $ 20,800 Transaction data for the year ended June 30, 2018, follows: a. Net income, $71,000 b. Depreciation expense on equipment, $14,000 c. Purchased a long-term investment with cash, $16,800 d. Sold land for $63,600, including a $7,000 loss e. Acquired equipment by issuing a long-term note payable, $15,500 f. Paid off a long-term note payable, $58,600 g. Received cash for the issuance of common stock, $500 h. Paid cash dividends, $7,200 i. Paid off a short-term note payable by issuing common stock, $6,100 Requirement 2. Prepare a supplementary schedule showing cash flows from operations by the direct method. The accounting records provide the following: collections from customers, $260,000; interest received, $1,900; payments to suppliers, $158,600; payments to employees, $40,200; payments for income tax, $12,600; and payment of interest, $4,700. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Mary McGuire Design Studio, Inc. Partial Statement of Cash Flows (Direct Method) Year Ended June 30, 2018 Cash flows from operating activities: Receipts: Total cash receipts Payments: Total cash payments Total cash payments Net cash provided by (used for) operating activities