Question

The following changes in account balances were taken from Walson Company's adjusted trial balance at the end of 2019:

		Net Changes for 2019
		Debit		Credit
Cash		$2,100
Accounts Receivable		8,700
Inventory				$2,500
Land				1,900
Buildings and Equipment		10,400
Accumulated Depreciation				6,800
Accounts Payable		4,500
Salaries Payable				800
Income Taxes Payable				1,000
Common Stock, no par				9,000
Retained Earnings		4,000
Sales				69,000
Cost of Goods Sold		34,000
Salaries Expense		17,200
Depreciation Expense		6,800
Income Tax Expense		3,300
Totals		$91,000		$91,000

In addition, the following information was obtained from the company's records:

• Land was sold, at cost, for $1,900.
• Dividends of $4,000 were declared and paid.
• Equipment was purchased for $10,400.
• Common stock was issued for $9,000.
• Beginning cash balance was $17,000.

Required

Using visual inspection and the direct method, prepare Walson's 2019 statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.) Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.

WALSON COMPANY
Statement of Cash Flows
For Year Ended December 31, 2019
Operating Activities:
Cash Inflows:
	$
Cash inflows from operating activities		$
Cash Outflows:
	$
Cash outflows for operating activities
Net cash provided by operating activities		$
Investing Activities:
	$
Net cash used for investing activities
Financing Activities:
	$
Net cash provided by financing activities
Net increase in cash		$
		$

Answer 1

60,300 $ 60,300 36,000 16,400 2,300 WALSON COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Cash Inflows Collections from Customers $ Cash inflows from operating activities Cash Outflows Cash paid to suppliers $ Cash paid for Salaries $ Cash paid for Income Taxes $ Cash outflows for operating activities Net Cash provided by Operating activities Investing Activities: Cash paid for purchase of Equipment $ Cash received from sale of Land $ Net cash used for investing activities Financing Activities: Cash received from issuance of Common stock $ Cash paid for dividends $ Net cash provided by financing activities Net increase in cash Beginning cash balance Ending cash balance $ $ 54,700 5,600 (10,400) 1,900 $ (8,500) 9,000 (4,000) $ $ $ $ 5,000 2,100 17,000 19,100

Working Notes : Collections from Customer's Sales Less: Increase in accounts receivables $ $ $ 69,000 8,700 60,300 2 Cash paid to suppliers Cost of Goods sold Less: Decrease in Inventory Add: Decrease in Accounts Payable $ $ $ $ 34,000 2,500 4,500 36,000 3 Cash paid for Salaries Salaries Payable Less: Increse in Salaries payable $ $ $ 17,200 800 16,400 4 Cash paid for Income Taxes Income Tax Expenses Less: Increase in Income tax payable $ $ $ 3,300 1,000 2,300