Textbook Problem

Statement of Cash Flows: Direct Method The following information is for Leer Company:

1. a. Payments of interest, $5,000
2. b. Depreciation expense, $22,700
3. c. Receipt from sale of land, $3,100
4. d. Payments of income taxes, $6,200
5. e. Beginning cash balance, $16,500
6. f. Decrease in receivables, $7,400
7. g. Interest and dividends collected, $6,300
8. h. Payments of dividends, $5,200
9. i. Decrease in accounts payable, $8,600
10. j. Payments to suppliers and employees, $50,300
11. k. Receipt from issuance of common stock, $11,000
12. l. Collections from customers, $61,700
13. m. Payment for purchase of investments, $17,800
14. n. Net income, $73,400

Required:

Using the direct method for operating cash flows, prepare Leer’s statement of cash flows.