The 2010 accounting records of Verlander Transport reveal these transactions and events.

InstructionsPrepare the cash flows from operating activities section using the direct method. (Not all of the items will beused.)

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Payment of interest Cash sales Receipt of dividend revenue Payment of income taxes Net income Payment of accounts payable for merchandise Payment for land $ 10,000 Collection of accounts receivable Payment of salaries and wages 18,000 Depreciation expense 12,000 Proceeds from sale of vehicles 38,000 Purchase of equipment for cash Loss on sale of vehicles 115,000 Payment of dividends 74,000 Payment of operating expenses $182,000 16,000 22,000 3,000 14,000 28.000