Chapter 14, Problem 14.11SE

Preparing a statement of cash flows using the direct method

Green Bean, Inc. began 2016 with cash of $57,000. During the year, Green Bean eared revenue of $596,000 and collected $618,000 from customers. Expenses for the year totaled $433,000, of which Green Bean paid $214,000 in cash to suppliers and $209,000 in cash to employees. Green Bean also paid $146,000 to purchase equipment and a cash dividend of $56,000 to its stockholders during 2016. Prepare the company's statement of cash flows for the year ended December 31, 2016. Format operating activities by the direct method.