Your friend has been working for about a year since graduating from university. He has come to you for advice about his saving and spending habits. You have accumulated the following information on his savings and spending over the past year: Salary received over the last year, net of income tax $46,500

Rent and utilities paid 16,500

Car expenses paid 4,000

Credit card debt at the start of the year 1.350

Food, entertainment, recreation paid 6.200

Credit card debt at the end of the year 2,500

Line of credit at the start of the year 2,700

Line of credit at the end of the year

1,500

Purchase of car

24,000

Car loan at the end of the year

16,000 Cash account at the beginning of the year

500

Cash received from disposal of motorcycle

1,350

Cash received from disposal of computer

190

Cash account at the end of the year

790

Purchase of investments (held for long-term purposes)

5,400

Student loan at the beginning of the year

16,000

Student loan at the end of the year

12,000

Purchase of new computer

1,800

Interest expense paid

1,800

(a) Prepare a statement of cash flows for your friend from information provided above using the direct method Statement of Cash flows _ directly method year ended