Question

Statement of cash flows-direct method applied to PR 13-1A Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions Dec. 31, 2043 Dec. 31,2072 Assets Cash $155,000.00 $150,000.00 Accounts receivable (net) 450,000.00 400,000.00 Inventories 770,000.00 750,000.00 100,000.00 Investments 0.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 9 Accumulated depreciation equipment (600,000.00) $2,675,000.00 1,200,000.00 (500,000.00) $2,100,000.00 10 Total assets Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 Accrued expenses payable (operating expenses) 50,000.00 45,000.00 30,000.00 14 Dividends payable 25,000.00 15 Common stock, $4 par 700,000.00 Paid-in capital in excess of par-common stock 200,000.00 600,000.00 175,000.00 950,000.00 $2,100,000.00 17 Retained earnings 1,360,000.00 $2,675,000.00 18 Total Liabilities and stockholders' equity

Answer 1

Statement of cash flows Sno Particulars ACash flows from operating activities Income Before tax Gain on sale of investment Income tax expense Accumulated Depreciation Increase In Accounts Receivable In Increase Inventories |Increase In Accounts Payable Amount Amount 625000 -75000 -125000 100000 -50000 -20000 40000 495000 B Cash flows from Investing activities Sale of Investments Purchases of Equipment Purchase of Lands 175000 -200000 -500000 -525000 cCash flows from Financing activities Issue of Common stock Paid in capital in excess of PAR Dividend Paid 100000 25000 -90000 35000 DNet Increase in cash(A+B+C) E Opening Cash Balance FEnding Cash Balance (D+E) 5000 150000 155000