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21 September, 02:10

The accounting staff of Wyoming Outfitters, Inc., has assembled the following information for the year ended December31, 2015:

Cashand cash equivalents, Jan. 1 $ 35,800

Cashand cash equivalents, Dec. 31 150,000

Cashpaid to acquire plant assets 23,000

Proceeds from short-term borrowing 10,000

Loans made to borrowers 5,200

Collections on loans (excluding interest) 4,000

Interest and dividends received 32,400

Cashreceived from customers 835,000

Proceeds from sales of plant assets 9,000

Dividends paid 53,000

Cashpaid to suppliers and employees 606,000

Interest paid 19,000

Income taxes paid 70,000

Using this information, prepare a statement of cash flows underdirect method. (List any deduction in cash and cashoutflows as negative amounts.)

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  1. 21 September, 05:44
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    statement of cash flows under direct method.

    Cash flow from Operating Activities

    Cash received from customers 835,000

    Cash paid to suppliers and employees (606,000)

    Cash Generated From Operations 229,000

    Interest paid (19,000)

    Income taxes paid (70,000)

    Net Cash from Operating Activities 140,000

    Cash flow from Investing Activities

    Cash paid to acquire plant assets (23,000)

    Loans made to borrowers (5,200)

    Interest and dividends received 32,400

    Proceeds from sales of plant assets 9,000

    Net Cash from Investing Activities 13,200

    Cash flows from Financing Activities

    Proceeds from short-term borrowing 10,000

    Collections on loans (excluding interest) 4,000

    Dividends paid (53,000)

    Net Cash used in Financing Activities (39,000)

    Net Cash Flow Movement During the Year 114,200

    Add Cash and cash equivalents, Jan. 1 35,800

    Cash and cash equivalents, Dec. 31 150,000

    Explanation:

    Show Cash flow resulting from:

    Operating Activities (Direct Method) Investing Activities Financing Activities
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