Tally-Ho Horse Farm Inc. began 2017 with cash of $44,000. During the year, Tally-Ho earned service revenue of $500,000 and collected $510,000 from customers. Expenses for the year totaled $420,000, with $400,000 paid in cash to suppliers and employees. Tally-Ho also paid $100,000 to purchase equipment and a cash dividend of $50,000 to shareholders.
During 2017, Tally-Ho borrowed $20,000 by issuing a note payable. Prepare the company's statement of cash flows for the year. Format operating activities by the direct method.