Question

MBA500 Project 6 Statement of Cash Flows Practice Problem
CHAPTER 13 Statement of Cash Flows
QUIZ C
Using the following information, prepare the Statement of Cash Flows for Nutritional Foods for the year ended December 31, 2010 in the Answer sheet in this Excel spreadsheet. Place parentheses around those figures in the statement representing cash outlays. Then answer the 4 questions in the Answer sheet in this Excel spreadsheet.
Payments for purchase of land		$416,000
Proceeds from sale of land		$58,000
Proceeds from issuance of capital stock		$347,000
Proceeds from issuance of bonds payable		$99,000
Payments to settle short-term debt		$74,000
Interest and dividends received		$49,500
Cash received from customers		$1,502,000
Dividends paid		$182,000
Cash paid to suppliers and employees		$1,172,000
Interest paid		$66,000
Income taxes paid		$115,500
Cash and cash equivalents, January 1, 2010		$86,000
Cash and cash equivalents, December 31, 2010		?

Answer 1

Payments for purchase of land Proceeds from sale of land Proceeds from issuance of capital stock Proceeds from issuance of bonds payable (416,000) 58,000 347,000 99,000 Payments to settle short term debt (74,000) Interest and dividends eeiveo Cash received from customers Dividends paid 49,500 1,502,000 (182,000) Cash paid to suppliers and employees Interest paid (1,172,000) (66,000) Income taxes paid Cash and cash equivalents, January 1 2010 (115,500) 86,000 Cash and cash equivalents, December 31, 2010 116,000

Cash and Cash equivalents at 31st December, 2010 has been calculated by adding cash inflows and reducing cash outlays from cash and equivalents as on 1st January, 2010.

Heads which denote payments form part of cash outlays.

Please feel free to comments in case you need any additional clarifications.