Question

Format of a cash flow statement-direct method following information to complete the statement of cash flows for Olympia, Inc. Place parentheses around those dollar amounts representing cash outlays. Purchases of marketable securities Proceeds from sales of marketable securities Interest and dividends received Interest paid Taxes paid Dividends paid Proceeds from short-term borrowing Payments to settle short-term debts (principal repaid) Cash received from customers Cash paid to suppliers and employees Proceeds from issuing capital stock Purchases of plant assets Proceeds from sales of plant assets Cash and cash equivalents, beginning of year $48,000 $75,000 $19,500 $18,000 $43,500 $27,000 $31,500 $36,000 $681,000 $531,000 $118,500 $201,000 $58,500 $73,500

Answer 1

Olympia Inc. Statement of cash flows Cash flow from operating activities: Interest and dividend received Interest paid Taxes paid Cash received from customers Cash paid to suppliers and employees Net cash provided by operating activities 19,500 -18,000 -43,500 681,000 -531,000 108,000 Cash flow from investing activities: Purchase of marketable securities Proceeds from sales of marketable securities Purchase of plant assets Proceeds from sales of plant assets Net cash used for investing activities -48,000 75,000 -201,000 58,500 -115,500 -27,000 -36.000 Cash flow from financing activities: Dividends paid Payments to settle short-term debts Proceeds from short term borrowing Proceeds from issuing capital stock Net cash provided by financing activities Net increase in cash during the year Cash and cash equivalents, beginning of the year Cash and cash equivalents, end of the year 31,500 118,500 87,000 79,500 73,500 153,000