The cash flow data of Calendar Company for the year ended December 31, 2004 are as follows:           

Cash payment of dividends $ 80,000

Purchase of land $ 18,000

Cash payments for interest $ 20,000

Cash payments for salaries $ 90,000

Sale of equipment $ 76,000

Retirement of common stock $ 50,000

Purchase of equipment $ 60,000

Cash payment to suppliers $170,000

Cash collection from customers $500,000

Cash at beginning of year $100,000

o Prepare a statement of cash flows for Calendar Company using the direct method in accordance with SFAS 95.

o Discuss, from an analyst's viewpoint, the purpose of classifying cash flows into the categories required by SFAS 95.