The 2012 accounting records of Liz Ten Transport reveal the following transactions and events. Prepare the cash flows from operating activities section using the direct method. (Not all of the items will be used.)Payment of interest$10000Collection of accounts receivable$182000Cash sales48000Payment of salaries and wages53000Receipt of dividend revenue18000Depreciation expense16000Payment of income taxes12000Proceeds from sale of vehicles12000Net income38000Purchase of equipment for cash22000Payment of accounts payable for merchandising115000Payment of dividends14000Payment for land74000Payment of operating expenses28000An inexperienced accountant for Nerys Corporation showed the following in the income statement: income before income taxes and extraordinary item $400000 and extraordinary loss from flood (before taxes) $70000. The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare a correct income statement.***USE ATTACHED WORKSHEET FOR SOLUTION***

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