Cascade Tile is a wholesale distributor of ceramic tiles. Its cash balance on De

Question

Cascade Tile is a wholesale distributor of ceramic tiles. Its cash balance on December 31, 20X0, was $226,000, and net income for 20X1 was $312,000. Its 20X1 transactions affecting income or cash follow (S in thousands) 1. Sales of $1,500 were all on credit. Cash collections from customers were $1,390. 2. The cost of items sold was $800. Purchases of inventory on account totaled $850, inventory and accounts payable were affected accordingly. 3. Cash payments on trade accounts payable totaled $815. . Accrued salaries and wages: total expense, $190, cash payments, $200 5. Depreciation was $45. 6. Interest expense, all paid in cash, was $13. 7. Other expenses, all paid in cash, totaled $100. 8. Income taxes accrued were $40, income taxes paid in cash were $35. 9. A warehouse was purchased for $435 cash. 10. Long-term debt was issued for $125 cash. 11. Cash dividends of $41 were paid. Prepare a statement of cash flows for 20X1 using the direct method for reporting cash flows from operating activities. Omit supporting schedules.

Explanation / Answer

Cash flow from Operating Activities Collection from Cutomers $1,390 Cash payment on trade accounts payable -815 Cash payment of salaries -200 Payment of Interst expenses -13 Cash payment of Other expenses -100 Cash payment of Income taxes -35 Net cash from operating Activities $227

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