#9 C presents the following information for the year just ended. Cash Beginning
ID: 2596187 • Letter: #
Question
#9
C presents the following information for the year just ended.
Cash Beginning $45,200 Increase in Accounts Rec. 5,000
Dividends paid 65,000 Interest paid 19,000
Income taxes paid 71,000 Cost of Goods Sold 600,000
Increase in Inventories 50,000 Increase in Payables 15,000
Cash paid to acquire equipment 21,000 Proceeds from loan 10,000
Loans made to borrowers 5,000 Collections on loans 4,000
Interest and dividends received 17,000 Sales 800,000
Present the Operating Activities section of a proper statement of cash flows. Put brackets around disbursements. The Investing and Financing sections are extra credit. Indirect method.
T Company
Statement of Cash Flows
Operating Activities
Net Income
Explanation / Answer
Note:
Net Income = Sales -Cost of goods sold - Interest paid - Income tax paid
= $800000 - $600000 - $19000 - $71000 = $110000
Particulars Amount ($) Amount ($) Cash flow from operating activities Net Income 110000 Increase in Inventory (50000) Increase in accounts receivable (5000) Increase in payable 15000 Cash flow from operating activities 70000 Cash flow from investing activities Loan made to borrowers (5000) Cash paid to acquire equipment (21000) Interest and dividends received 17000 Dividends paid (65000) Collection on loan 4000 Cash used in investing activities (70000) Cash flow from Financing activities Proceeds from loans 10000 Cash flow from Financing activities 10000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.