The following selected data for Dawson Inc. for 2017 was gathered by its accountants, who are responsible for preparing the financial statements:
Cost of good sold $56,500
Amortization Expense 14,000
Other operating expenses 17,700
Loss on sale of investments 1,500
Gain on sale of capital assets 8,500
Sales revenue 95,600
Interest revenue received 5,200
Dividend revenue received 2,500
Salary expense 27,200
Interest expense paid 5,900
Income tax expense 2,400
The cash balance on Jan. 1, 2017 has a balance of $15,000 and on Dec. 31, 2017, had a balance of $208,500
Other data gathered by the accountants for 2017:
Accounts receivable decreased $13,600
Inventory increased 6,800
Prepaid expenses decreased 2,700
Accounts payable increased 21,400
Salary payable increased 1,500
Accrued liabilities decreased 4,300
Income tax payable increased 800
Acquisition of capital assets 46,000
Issuance of common shares 80,000
Proceeds from sale of investments 35,000
Collection of loan principal 22,600
Payment of dividend 15,000
Proceeds of sale of capital assets 31,700
Proceeds from sale of repurchase of shares 45,000
In good form prepare the statement of cash flow for the year ended December 31,2017 using the direct method.
Cash collection from customers = Sales revenue + Decrease in
accounts receivable
Cash collection from customers = $95,600 + $13,600
Cash collection from customers = $109,200
Cash received for interest = Interest revenue
Cash received for interest = $5,200
Cash received for dividend = Dividend revenue
Cash received for dividend = $2,500
Cash paid for interest = Interest expense
Cash paid for interest = $5,900
Cash paid to suppliers = Cost of goods sold + Increase in
inventory - Increase in accounts payable
Cash paid to suppliers = $56,500 + $6,800 - $21,400
Cash paid to suppliers = $41,900
Cash paid for other operating expenses = Other operating
expenses - Decrease in prepaid expenses + Decrease in accrued
liabilities
Cash paid for other operating expenses = $17,700 - $2,700 +
$4,300
Cash paid for other operating expenses = $19,300
Cash paid to employees = Salary expense - Increase in salary
payable
Cash paid to employees = $27,200 - $1,500
Cash paid to employees = $25,700
Cash paid for income tax = Income tax expense - Increase in
income tax payable
Cash paid for income tax = $2,400 - $800
Cash paid for income tax = $1,600
The following selected data for Dawson Inc. for 2017 was gathered by its accountants, who are...
this is a financial accounting question
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