Question

Instructions The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $625,650.00 $586,340.00 Accounts receivable (net) 228,170.00 208,030.00 5 Inventories 641,480.00 617,130.00 Investments 0.00 240,290.00 7 Land 328,170.00 0.00
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.

Thanks!

Answer 1

$ 146,010 Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from Operating Activities Cash received from customers $ 5,357,989 Cash payments for merchandise $ 3,311,420 Cash payments for operating expenses $ -1,766,909 Cash payments for income tax $ -133,650 Net cash flow from Operating Activities Cash flows from Investing Activities Cash received from sale of investments $ 280,680 Cash paid for purchase of land $ -328,170 Cash paid for purchase of equipment $ -153,770 Net cash flow used for Investing activities Cash flows from Financing Activities Cash paid for dividends $ 92,940 Cash received from sale of common stock $ 187,500 Net Cash flow from Financing Activities Change in cash Cash at the beginning of the year Cash at the end of the year $ -201,260 $ $ $ 94,560 39,310 586,340 625,650

Cash received from customers = Beginning accounts receivable + Sales - Ending accounts receivable
Cash received from customers = $208,030 + $5,378,129 - $228,170
Cash received from customers = $5,357,989

Inventory purchased = Ending inventory + Cost of goods sold - Beginning inventory
Inventory purchased = $641,480 + $3,306,510 - $617,130
Inventory purchased = $3,330,860

Cash payments for merchandise = Beginning accounts payable + Inventory purchased - Ending accounts payable
Cash payments for merchandise = $404,860 + $3,330,860 - $424,300
Cash payments for merchandise = $3,311,420

Cash payments for operating expenses = Beginning accrued expenses payable + Other operating expenses - Ending accrued expenses payable
Cash payments for operating expenses = $52,880 + $1,755,879 - $41,850
Cash payments for operating expenses = $1,766,909

Cash payments for income tax = Income taxes expense
Cash payments for income tax = $133,650

Cash paid for dividends = Beginning dividends payable + Dividend declared - Ending dividend payable
Cash paid for dividends = $19,880 + $96,260 - $23,200
Cash paid for dividends = $92,940