Exercise 12-13 The 2017 accounting records of Teal Mountain Inc. reveal these tr

Question

Exercise 12-13

The 2017 accounting records of Teal Mountain Inc. reveal these transactions and events.

Prepare the cash flows from operating activities section using the direct method.

Payment of interest $ 19,500 Payment of salaries and wages $ 103,350 Cash sales 93,600 Depreciation expense 31,200 Receipt of dividend revenue 35,100 Proceeds from sale of vehicles 1,583,400 Payment of income taxes 23,400 Purchase of equipment for cash 42,900 Net income 74,100 Loss on sale of vehicles 5,850 Payment for merchandise 189,150 Payment of dividends 27,300 Payment for land 144,300 Payment of operating expenses 54,600 Collection of accounts receivable 380,250

Explanation / Answer

Prepare the cash flows from operating activities section using the direct method.

Cash sales 93600 Collection of accounts receivable 380250 Payment for merchandise (189150) Payment of salaries and wages (103350) Payment of operating expenses (54600) Payment of interest (19500) Payment of income taxes (23400) Net cash flow from operating activities 83850

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