Clayton Company-statement of cash flows-direct method

The following were the account balances of Clayton Company for the beginning and end of 2011.

DEBITS December 31,2011 January 1,2011
Cash 89,130 47,000
Accounts Receivable 30,000 22,700
Inventory 15,000 12,300
Prepaid Insurance 2,500 1,590
Equipment 80,000 68,000
Cost of Goods Sold 514,000
Operating Expenses 36,200
Income Tax Expense 33,000
Loss on Sale of Equipment 2,300
Total Debits 802,190 151,590

CREDITS
Accumulated Depreciation-Equipment 32,500 25,600
Accounts Payable 9,400 11,500
Interest Payable 1,200 1,600
Income Taxes Payable 8,700 9,500
Notes Payable-Long term 8,000 13,000
Common Stock 60,000 50,000
Paid-in Capital- Common Stock 33,000 26,000
Retained Earnings (610)* 14,390
Sales 950,000
Total Credits 802,190 151,590




* Preclosing ending balance

Additional information:
A. All sales and purchases of merchandise are on credit.
B. Equipment costing $15,700 was sold for cash.
C. The operating Expenses include:
a. Depreciation expense $17,000
b. Interest expense 4,200
c. Insurance expense 15,000
D. Equipment was purchased by issuing common stock and paying the remaining balance with cash. (There were other common stock transactions)


Required:

Prepare a statement of cash flows for Clayton Company for the year ending December 31, 2011, using the direct method, include reconciliation of net income to net cash provided by operating activities, and schedule of noncash investing and financing activities.