The accounting staff of Wyoming Outfitters, Inc., has assembled the following in
ID: 2396833 • Letter: T
Question
The accounting staff of Wyoming Outfitters, Inc., has assembled the following information for the current year ended December 31.
Cash and cash equivalents, Jan. 1 $ 35,800
Cash and cash equivalents, Dec. 31 105,000
Cash paid to acquire plant assets 25,000
Proceeds from short-term borrowing 10,000
Loans made to borrowers 4,400
Collections on loans (excluding interest) 4,000
Interest and dividends received 27,600
Cash received from customers 795,000
Proceeds from sales of plant assets 9,000
Dividends paid 44,000
Cash paid to suppliers and employees 618,000
Interest paid 19,000
Income taxes paid 66,000
Using this information, prepare a statement of cash flows under direct method. (List any deduction in cash and cash outflows as negative amounts.)
Explanation / Answer
Wyoming Outfitters Inc.
Statement of Cash Flows for the year ended December 31
$
$
Operating activities:
Cash received from customers
7,95,000.00
Cash paid to Suppliers and employees
-6,18,000.00
Income tax paid
-66,000.00
Net cash provided by operating activities
1,11,000.00
Investing activities:
Acquisition of plant assets
-25,000.00
Interest and dividends received
27,600.00
Sale of plant assets
9,000.00
Loan made to borrowers
-4,400.00
Collection on loans (excluding interest)
4,000.00
Net cash used in investing activities
11,200.00
Financing activities:
Proceeds from Short Term Borrowing
10,000.00
Dividend paid
-44,000.00
Interest paid
-19,000.00
Net cash used in financing activities
-53,000.00
Net increase in cash
69,200.00
Beginning cash and cash equivalents
35,800.00
Ending cash and cash equivalents
1,05,000.00
Wyoming Outfitters Inc.
Statement of Cash Flows for the year ended December 31
$
$
Operating activities:
Cash received from customers
7,95,000.00
Cash paid to Suppliers and employees
-6,18,000.00
Income tax paid
-66,000.00
Net cash provided by operating activities
1,11,000.00
Investing activities:
Acquisition of plant assets
-25,000.00
Interest and dividends received
27,600.00
Sale of plant assets
9,000.00
Loan made to borrowers
-4,400.00
Collection on loans (excluding interest)
4,000.00
Net cash used in investing activities
11,200.00
Financing activities:
Proceeds from Short Term Borrowing
10,000.00
Dividend paid
-44,000.00
Interest paid
-19,000.00
Net cash used in financing activities
-53,000.00
Net increase in cash
69,200.00
Beginning cash and cash equivalents
35,800.00
Ending cash and cash equivalents
1,05,000.00
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