Question

The accounting staff of Wyoming Outfitters, Inc., has assembled the following information for the current year ended December 31.

Cash and cash equivalents, Jan. 1	$	35,800
Cash and cash equivalents, Dec. 31		169,800
Cash paid to acquire plant assets		25,000
Proceeds from short-term borrowing		10,000
Loans made to borrowers		3,300
Collections on loans (excluding interest)		4,000
Interest and dividends received		31,300
Cash received from customers		845,000
Proceeds from sales of plant assets		9,000
Dividends paid		43,000
Cash paid to suppliers and employees		604,000
Interest paid		19,000
Income taxes paid		71,000

Using this information, prepare a statement of cash flows under direct method. (List any deduction in cash and cash outflows as negative amounts.)

Answer 1

Cash Flow Statement - Wyoming Outfitter- Direct Method
Detail	Amount	Amount
Cash Flows From Operating Activities:
Cash Received From Customers	$845,000.00
Interest And Dividends Received	$31,300.00
Cash Paid To Suppliers And Employees	-$604,000.00
Interest Paid	-$19,000.00
Income Taxes Paid	-$71,000.00
Net Cash Flow From Operating Activities		$182,300.00
Cash Flows From Investing Activities:
Loans Made To Borrowers	-$3,300.00
Collections On Loans	$4,000.00
Proceeds From Sales Of Plant Assets	$9,000.00
Cash Paid To Acquire Plant Assets	-$25,000.00
Net Cash Used By Investing Activities		-$15,300.00
Cash Flows From Financing Activities:
Proceeds From Short-Term Borrowing	$10,000.00
Dividends Paid	-$43,000.00
Net Cash Used By Financing Activities		-$33,000.00
Net Increase In Cash And Cash Equivalents		$134,000.00
Cash And Cash Equivalents, Beginning Of Year		$35,800.00
Cash And Cash Equivalents, End Of Year		$169,800.00