Major Company has the following calendar-year information:

Cash paid for merchandise inventory                        $230,000

Cash paid for interest on notes payable                      5,000

Cash received from sale of land                                    100,000

Cash paid for principal on notes payable                     15,000

Cash paid for operating expenses                                 270,000

Cash paid to purchase equipment                                125,000

Cash received from customers                                         545,000

Cash received from stock issuance                                 50,000

Cash borrowed on a long-term note payable                  55,000

Cash paid for dividends to shareholders                         60,000

Cash balance at beginning of year                                 30,000

Cash balance at end of year                                           75,000

 Required

Prepare a COMPLETE statement of cash flows for Major Company using the direct method. Be sure to show cash inflows as positive amounts and cash outflows as negative amounts.

Answer rating: 100% (QA)

Statement of Cash Flows for Major Company Direct Method Operating Activities Cash received from customers 545000 Cash paid for operating expenses 270000 Net cash provided by operating activities 27500... View the full answer