Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: $Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: Additional information provided: • Equipment costing $52,000 was purchased for cash. • Equipment with a net asset value of $10,000 was sold for $14,000 • Depreciation expense of $12,000 was recorded during the year. • During 2014, the company repaid $40,000 of long-term notes payable. • During 2014, the company borrowed $34,000 on a new note payable • There were no stock retirements during the year. • There were no sales of treasury stock during the year. Please prepare a complete statement of cash flows using the direct method, in the following format: \begin{array} { | l | l | l | } \hline \text { Operating activities: } &\quad\quad &\quad\quad \\ \hline \text { Receipts } & & \\ \hline \text { Collections from customers } & & \\ \hline \text { Interest received } & & \\ \hline \text { Total cash receipts } & & \\ \hline \text { Tayments } & & \\ \hline \text { To employees } & & \\ \hline \text { For interest } & & \\ \hline \text { For income tax } & & \\ \hline \text { Total cash payments } & & \\ \hline \text { Net cash from operating activities } & & \\ \hline & & \\ \hline \text { Investing activities: } & & \\ \hline \text { Proceeds from sale of assets } & & \\ \hline \text { Acquisition of assets } & & \\ \hline \text { Net cash from investing activities } & & \\ \hline & & \\ \hline \text { Financing activities: } & & \\ \hline \text { Issuance of stock } & & \\ \hline \text { Purchase of treasury stock } & & \\ \hline \text { Borrowing on notes payable } & & \\ \hline \text { Repayments of notes payable } & & \\ \hline \text { Payment of dividends } & & \\ \hline \text { Net cash from financing activities } & & \\ \hline\\ \hline \text { Net change in cash } & & \\ \hline \text { Cash balance, December 31, 2013} & & \\ \hline \text { Cash balance, December 31, 2014 }\\ \hline \end{array}$
Additional information provided:
• Equipment costing $52,000 was purchased for cash.
• Equipment with a net asset value of $10,000 was sold for $14,000
• Depreciation expense of $12,000 was recorded during the year.
• During 2014, the company repaid $40,000 of long-term notes payable.
• During 2014, the company borrowed $34,000 on a new note payable
• There were no stock retirements during the year.
• There were no sales of treasury stock during the year.
Please prepare a complete statement of cash flows using the direct method, in the following format:

\begin{array} { | l | l | l | } \hline \text { Operating activities: } &\quad\quad &\quad\quad \\\hline \text { Receipts } & & \\\hline \text { Collections from customers } & & \\\hline \text { Interest received } & & \\\hline \text { Total cash receipts } & & \\\hline \text { Tayments } & & \\\hline \text { To employees } & & \\\hline \text { For interest } & & \\\hline \text { For income tax } & & \\\hline \text { Total cash payments } & & \\\hline \text { Net cash from operating activities } & & \\\hline & & \\\hline \text { Investing activities: } & & \\\hline \text { Proceeds from sale of assets } & & \\\hline \text { Acquisition of assets } & & \\\hline \text { Net cash from investing activities } & & \\\hline & & \\\hline \text { Financing activities: } & & \\\hline \text { Issuance of stock } & & \\\hline \text { Purchase of treasury stock } & & \\\hline \text { Borrowing on notes payable } & & \\\hline \text { Repayments of notes payable } & & \\\hline \text { Payment of dividends } & & \\\hline \text { Net cash from financing activities } & & \\\hline\\\hline \text { Net change in cash } & & \\\hline \text { Cash balance, December 31, 2013} & & \\\hline \text { Cash balance, December 31, 2014 }\\\hline\end{array}

Avatar Company Uses the Indirect Method to Prepare Its Statement

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