Befuddled Corporation collected the following information on inflows and outflows for 2011:

Befuddled had a cash balance of $89.200 on 1/1/11.

Required:
1. Prepare a statement of cash flows, using the direct method to determine net cash flow from operating activities.
2. What can you conclude by examining the patterns in Befuddled€™s cash flows?

Transcribed Image Text:

Inflows Cash collections from sales Proceads from disposal of equipmert Proceeds received from issuance of Outflows Cash payments for cost of goods sold Cash payments for operating expenses Cash payments for interest Cash payments for income taxes Cash payments for purchases of $534,900 193,200 36,400 21,300 217,150 $956,500 11,250 30,000 notes payable equipment Repayment of shorHerm notes payable Payment of cash dividends 20,000 38,000