Question: Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2012, the company begins operations by issuing stock for $10,000 and obtaining a loan from a local bank for $25,000. By the end of 2012, the company provides will preparation services of $32,000 cash and pays employee salaries of $23,000. In addition, Smith pays $2,000 in cash dividends to stockholders on December 31, 2012. Determine the amount of financing cash flows Smith would report in 2012.