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Cash flows from operating activities section

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Please help the book I have does a very poor job of explaining how to get from the info below to a no kidding operating cash flow!

The 2010 accounting records of Spaulding Transport reveal these transactions:

Payment of interest $10,000
Cash Sales 48,000
Receipt of dividend revenue 18,000
Payment of income taxes 12,000
Net Income 38,000
Payment for merchandise 105,000
Payment for land 74,000
collection of accounts recievable 192,000
Payment of saleries and wages 53,000
Depreciation expense 16,000
Proceedes from sale vehicles 812,000
Purchase of equipment for cash 22,000
loss on sale of vehicles 3,000
payment of dividends 14,000
payment of operating expenses 28,000

Prepare the cash flows from operating activities section using the direct method (not all othe items will be used)

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In making the operating activities section we look at the cash inflows and outflows relating to operations - collection of receivables, payment of operating expenses, payment for inventories etc. This is done below
Payment of interest $10,000 - operating outflow
Cash Sales 48,000 - operating inflow
Receipt of dividend ...

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The solution explains how to prepare a cash flows from operating activities section

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Burtric: prepare operating activities section of the statement of cash flows- indirect

Burtric Company's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below:

Debit balances:
Cash $ 24,000
Accounts receivable 15,000
Inventory (18,000)
Prepaid expenses ( 6,000)
Long-term investments 10,000
Plant and equipment 40,000

Credit balances:
Accumulated depreciation 32,000
Accounts payable (14,000)
Accrued liabilities 11,000
Taxes payable ( 8,000)
Bonds payable (40,000)
Deferred taxes 12,000
Common stock 10,000
Retained earnings 62,000

The company declared and paid cash dividends of $36,000 last year.


Construct in good form the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)

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