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6 April, 08:10

Given:

(1) Provided delivery service to customers, who paid $1,390 in cash and owed $24,704 on account.

(2) Purchased new equipment costing $3,434; signed a long-term note.

(3) Paid $7,864 cash to rent equipment and aircraft, with $3,136 for rent this year and the rest for rent next year.

(4) Spent $864 cash to repair facilities and equipment during the year.

(5) Collected $24,285 from customers on account.

(6) Repaid $150 on a long-term note (ignore interest).

prepare a complete statement of cash flows using above data

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Answers (1)
  1. 6 April, 10:03
    0
    Direct Method

    Operting Activities

    $1,390 Cash Collected from Services

    -$7,864 Cash to rent Equipment

    -$0,864 Cash to repair facilities

    $24,285 Collected from customers

    Financing Activities

    -$0,150 Repaid Long Term

    $16,797 Net Cash

    Explanation:

    These others activities are not included because doesn't inclulde movements of cash.

    (2) Purchased new equipment costing $3,434; signed a long-term note.
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