Mason Interiors began the year with cash of $55,000 During the year, Mason Interiors eamed service revenue of $400.000 Cash collections for the year were $400.000. Expenses for the year were $355,000, with $340,000 of that total paid in cash. The company also used cash to purchase equipment for $95.000 and to pay a cash dividend to stockholders of $28,000. During the year, the company also bomowed $44.000 cash by issuing a long-term note payable Requirement Prepare the company's statement of cash flows using the direct method. Prepare the statement one section at a time (Use parentheses or a minus sign for numbers to be subtracted, net cash outfows, and decreases in cash) Mason Interiors Statement of Cash Flows (Direct Method) For the Year Ended December 31 Operating Activities: Net cash provided by (used for) operating activities

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial…