The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash received from: Customers $ 730,000 Interest on notes receivable 19,000 Collection of notes receivable 170,000 Sale of land 47,000 Issuance of common stock 270,000 Cash paid for: Interest on notes payable 25,000 Purchase of equipment 155,000 Operating expenses 475,000 Dividends to shareholders 37,000 Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Operating Activity Section | ||
Cash Receipts: | ||
Cash received from customers | 730,000 | |
Cash received from interest on note receivable | 19,000 | |
Total cash receipts | 749,000 | |
Cash payments: | ||
Cash paid for interest on notes payable | 25,000 | |
Cash paid for operating expenses | 475,000 | |
Total cash payments | -500,000 | |
Net cash flows from operating activities | $249,000 |
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