Question

(a)

Prepare the 2022 statement of cash flows for Cullumber Company. (Show amounts that decrease cash flow either with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)

You are provided with the following information for Pharoah Company, effective as of its April 30, 2022, year-end.

This information is for Cullumber Company for the year ended December 31, 2022. Cash received from lenders $21,200 Cash received from customers 45,600 Cash paid for new equipment 28,600 Cash dividends paid 5,800 Cash paid to suppliers 15,100 Cash balance 1/1/22 12,000

Answer 1

Solution:
	Statement of Cash Flows - Direct Method
	© www.excel-skills.com	Amount
	Cash flows from operating activities
	Cash Receipts:
	Cash receipts from customers	$         45,600
	Cash Payments:
	Cash Paid to Supplier	$       -15,100
	Net cash from operating activities		$      30,500
	Cash flows from investing activities
	Cash Paid for new equipment	$       -28,600
	Net cash used in investing activities		$     -28,600
	Cash flows from financing activities
	Cash Received from Lenders	$         21,200
	Cash Dividend Paid	$         -5,800
	Net cash used in financing activities		$      15,400
	Net increase in cash and cash equivalents		$      17,300
	Cash and cash equivalents at beginning of period		$      12,000
	Cash and cash equivalents at end of period		$      29,300