Exercise 12-13 The 2014 accounting records of Rogan Transport reveal these trans

Question

Exercise 12-13 The 2014 accounting records of Rogan Transport reveal these transactions and events. Payment of salaries and wages Depreciation expense Proceeds from sale of vehicles Purchase of equipment for cash Loss on sale of vehicles Payment of dividends Payment of operating expenses $10,000 48,000 18,000 $53,000 16,000 812,000 Payment of interest Cash sales Receipt of dividend revenue Payment of income taxes Net income Payment for merchandise Payment for land Collection of accounts receivable 12,000 38,000 97,000 74,000 22,000 3,000 14,000 28,000 195,000 Prepare the cash flows from operating activities section using the direct method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) Rogan Transport Statement of Cash Flows-Direct Method For the Year 2014

Explanation / Answer

Rogan Transport Statement of cash flows - Direct Method For the year 2014 Cash flows from operating activities: Cash receipt from customers ($48,000 + $1,95,000) $ 2,43,000 Dividend Revenue $     18,000 (a) $ 2,61,000 Less: Cash Payments For Interest $ 10,000 For Income taxes $ 12,000 To supplier for merchandise $ 97,000 For salaries and wages $ 53,000 For operating expenses $ 28,000 (b) $ 2,00,000 (a) - (b) Net cash provided by operating activities $     61,000

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