using visual inspection and the direct method prepare a 2007 statement of cash flows 610542

Visual Inspection – The following changes in account balances were taken from the adjusted trial balance of the Walson Company at the end of 2007:

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Debit	Credit
Cash	$2,100
Accounts receivable	8,700
Inventory	$2,500
Land	1,900
Buildings and equipment	10,400
Accumulated depreciation	6,800
Accounts payable	4,500
Salaries payable	800
Income taxes payable	1,000
Common stock, no par	9,000
Retained earnings	4,000
Sales	69,000
Cost of goods sold	34,000
Salaries expense	17,200
Depreciation expense	6,800
Income tax expense	3,300
Totals	$91,000	$91,000

In addition, the following information was obtained from the company’s records:

1. Land was sold, at cost, for $1,900

2. Dividends of $4,000 were declared and paid

3. Equipment was purchased for $10,400

4. Common stock was issued for $9,000

5. Beginning cash balance was $17,000

Required

Using visual inspection and the direct method, prepare a 2007 statement of cash flows for the Walson Company. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)

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