Skyler's Wine Company uses the direct method to prepare its statement of cash flows

Refer to the following financial statement information for the year ending December 31, 2017:

Skyler's Wine Company
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase (Decrease)
Cash $33,000 $13,000 $20,000
Accounts Receivable 29,000 36,000 (7,000 )
Merchandise Inventory 56,000 29,000 27,000
Plant and Equipment, net 126,000 92,000 34,000
Total Assets $244,000 $170,000 $74,000

Accounts Payable $9,000 $13,000 $(4,000 )
Accrued Liabilities 7,000 3,000 4,000
Long-term Notes Payable 70,000 79,000 (9,000 )
Total Liabilities $86,000 $95,000 $(9,000 )

Common Stock $55,000 $3,000 $52,000
Retained Earnings 115,000 78,000 37,000
Treasury Stock (12,000 ) (6,000 ) (6,000 )
Total Stockholders' Equity $158,000 $75,000 $83,000

Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000

Skyler's Wine Company
Income Statement
Year Ended December 31, 2017
Sales Revenue $291,300
Interest Revenue 1,000
Gain on Sale of Plant Assets 6,000
Total Revenues and Gains $298,300
Cost of Goods Sold 145,000
Salaries and Wages Expense 49,000
Depreciation Expense-Plant Assets 16,000
Other Operating Expense 25,000
Interest Expense 3,500
Income Tax Expense 7,800
Total Expenses 246,300
Net Income $52,000

Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000.
During 2017, the company repaid $43,000 of long-term notes payable.
During 2017, 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.

Prepare a complete statement of cash flows using the direct method.
Accrued Liabilities relate to other operating expenses.
What will be an ideal response

Accounts Receivable beginning balance $36,000
Add: Sales Revenue 291,300
Less: Accounts Receivable ending balance (29,000 )
Collections from customers 298,300

Merchandise Inventory, ending balance $56,000
Add: Cost of Goods Sold 145,000
Less: Merchandise Inventory, beginning balance (29,000 )
Purchases 172,000
Add: Accounts Payable, beginning balance 13,000
Less: Accounts Payable, ending balance (9,000 )
Cash Paid for Merchandise Inventory $176,000

Accrued Liabilities, beginning balance 3,000
Add: Other Operating Expenses 25,000
Less: Accrued Liabilities, ending balance (7,000 )
Cash Paid for Operating Expenses $21,000
Total Cash Payments $197,000

Skyler's Wine Company
Statement of Cash Flows
Year Ended December 31, 2017
Cash Flows from Operating Activities:
Receipts
Collections from Customers $298,300
Interest Received 1,000
Total Cash Receipts $299,300
Payments
To Suppliers (197,000 )

To Employees (49,000 )
For Interest (3,500 )
For Income Tax (7,800 )
Total Cash Payments (257,300 )
Net Cash Provided by Operating Activities $42,000

Cash Flows from Investing Activities:
Cash Payment for Acquisition of Equipment (60,000 )
Cash Receipt from Disposal of Equipment 16,000
Net Cash Used for Investing Activities (44,000 )

Cash Flows from Financing Activities:
Cash Receipt from Issuance of Notes Payable 34,000
Cash Payment of Notes Payable (43,000 )
Cash Receipt from Issuance of Common Stock 52,000
Cash Payment for Purchase of Treasury Stock (6,000 )
Cash Payment of Dividends (15,000 )
Net Cash Provided by Financing Activities 22,000
Net Increase (Decrease) in Cash $20,000
Cash Balance, December 31, 2016 13,000
Cash Balance, December 31, 2017 $33,000