Question

MNP Inc. have gathered together the following data from the accounting records: Payments of non-current debt$220,000 Collections on accounts receivable215,600 Acquisition of equipment by issuing non-current note payable90,000 Interest revenue 15,600 Credit sales 350,600 Loan collections48.200 Proceeds from sale of investments, not including $4,200 gain38,200 Salary expense105,700 Cash payments to purchase capital assets 72,000 Cost of goods sold425,000 Collection of interest revenue15,500 Payment of cash dividends 36,200 Income tax expense and payments41,500 Proceeds from sale of capital assets, not including $7,200 loss32,500 Cash receipt of dividend revenue 20,200 Payment of salaries 95,600 Depreciation expense 72,500 Cash sales 208,000 Proceeds from issuance of common shares350,000

this is a financial accounting question

Answer 1

statement of cashflow under direct method :- $ $ Items cash flow from operating activities :- Collection on account recevables Cash sales Salary paid payment to supplies payment on income tax 2,15,600 2,08,000 (95600) [285000] (41500] 1,500 Cashflow from investment activity :- proceeds from sale of capitalassét Collection of intrest revenue lone loan collection proceeds of sales of investment Cash receipt of dividend revenue purchase of capitalasset 32,500 15,500 48,200 38,200 20,200 [72,000) 82,600 cash flow from finance activities : loan to another company payment of noncurrent 'debt intrest expensses and payments payment of cash dividend proceeds from issue of stock vetener increase cash balance Cash balance on dec 31, 2016 cash balance on dec 31, 2017 (50,000] (2,20,000] [61,000] [36,200) 3,50,000 17,200] 66,900 55,500 1,22,400

Note: d. depreciatien is non cash item 2. Bond payable by issue of shares, so there is no involument of cash. 3. acquisition of equipment by issue of noncurrent not payable, so non cash item.