Waggoner Company prepares the following statement of cash flows under the direct method:

Required
Identify the errors Waggoner has made in its statement and prepare a corrected statement. Assume that the beginning and ending cash balances are correct.

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Waggoner Company Statement of Cash Flows December 31, 2012 Cash flows from operating activities Cash receipts from customers Less cash payments $423 To suppliers S 91 For equipment To employees 58 12 205 S218 For taxes Net cash used by operating activities Cash flows from investing activities Depreciation expense Purchase of short-term investments Net cash used by investing activities Cash flows from financing activities Payment of dividends Repayment of bonds Net cash used by financing activities Net increase in cash Cash, beginning of the year Cash, end of the year s 14 (28) (14) (105) (98) S106 10 s 88