Question: 1. Describe the direct method of reporting cash flows from operating activities.
2. When a statement of cash flows is prepared using the direct method, what are some of the operating cash flows?
3. Use the following information to determine this company's cash flows from financing activities.
a. Net income was $472,000.
b. Issued common stock for $75,000 cash.
c. Paid cash dividend of $13,000.
d. Paid $120,000 cash to settle a note payable at its $120,000 maturity value.
e. Paid $118,000 cash to acquire its treasury stock.
f. Purchased equipment for $92,000 cash.