Question

Exercise 17-13 The 2020 accounting records of Blocker Transport reveal these transactions and events. Payment of interest $10,400 Collection of accounts receivable $190,800 Cash sales 50,900 Payment of salaries and wages 56,500 Receipt of dividend revenue 18,900 Depreciation expense 15,800 Payment of income taxes 16,200 Proceeds from sale of vehicles 11,600 Net income 38,300 Purchase of equipment for cash 22,000 Payment of accounts payable Loss on sale of vehicles 3,500 for merchandise 115,900 Payment of dividends 13,100 Payment for land 74,000 Payment of operating expenses 28,500 Prepare the cash flows from operating activities section using the direct method. (Not all of the items will be used.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Cash Flows from Operating Activities:
Cash Receipt from:
Collection from customers	$ 241,700
(50900+190800)
Dividend Revenue	18,900
Total		$          260,600
Less :Cash Payments for:
Supplier of merchandise	$ 115,900
For salaries and wages	56,500
for operating expenses	28,500
For income taxes	16,200
For interest	10,400
Total		227,500
Net Cash Provided by Operating Activities:		$             33,100