Textbook Problem

Statement of Cash Flows The following are several items involving Tejera Company’s cash flow activities:

1. a. Net income, $60,400
2. b. Receipt from issuance of common stock, $32,000
3. c. Payment for purchase of equipment, $41,500
4. d. Payment for purchase of land, $19,600
5. e. Depreciation expense, $20,500
6. f. Patent amortization expense, $ 1,200
7. g. Payment of dividends, $21,000
8. h. Decrease in salaries payable, $2,600
9. i. Increase in accounts receivable, $10,300
10. j. Beginning cash balance, $30,700

Required:

Prepare Tejera’s statement of cash flows using the direct method.