Question

Exercise 12-17 The following information is available for Metlock, Inc. for 2022. Cash used to purchase treasury stock Cash dividends paid Cash paid for interest Net income Sales revenue Cash paid for taxes Cash received from customers Cash received from sale of building (at book value) Cash paid for operating expenses Beginning cash balance Cash paid for goods and services Cash received from issuing common stock Cash paid to redeem bonds at maturity Cash paid to purchase equipment $ 71,188 32,264 33,152 687,164 1,186,960 146,520 837,828 292,448 113,960 16,280 413,068 525,400 296,000 167,536 Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

		Metlock, Inc.
	Statement of Cash Flows-Direct Method
Beginning cash balance(1)						$16,280
Cash Flows from operating activities
Net Cash received from customers					$3,10,800	(837828-113960-413068)
Cash paid for Taxes					-$1,46,520
Net cash from operating activities(A)						$1,64,280
Cash Flows from Investing activities
Cash used to purchase treasure stock					-$71,188
Cash received from sale of building					$2,92,448
Cash paid to purchase equipment					-$1,67,536
Net cash from Investing activities(B)						$53,724
Cash Flows from Financing activities
Cash dividend paid					-$32,264
Cash paid for interest					-$33,152
Cash received from issuing common stock					$5,25,400
cash paid to redeem bonds at maturity					-$2,96,000
Net cash from Financing activities( C )						$1,63,984
Net Increase in Cash-2(A+B+C)						$3,81,988
Closing cash balance(1+2)						$3,98,268