Question: Lane s Furniture Gallery Inc provided the following data from the

Lane’s Furniture Gallery, Inc., provided the following data from the company’s records for the year ended March 31, 2015:
a. Credit sales, $606,400
b. Loan to another company, $11,300
c. Cash payments to purchase plant assets, $92,100
d. Cost of goods sold, $294,200
e. Proceeds from issuance of common stock, $8,500
f. Payment of cash dividends, $45,500
g. Collection of interest, $4,900
h. Acquisition of equipment by issuing short-term note payable, $24,200
i. Payments of salaries, $97,000
j. Proceeds from sale of plant assets, $21,800, including $6,400 loss
k. Collections on accounts receivable, $416,000
l. Interest revenue, $4,000
m. Cash receipt of dividend revenue, $4,500
n. Payments to suppliers, $386,400
o. Cash sales, $170,200
p. Depreciation expense, $48,000
q. Proceeds from issuance of note payable, $25,000
r. Payments of long-term notes payable, $60,400
s. Interest expense and payments, $13,400
t. Salary expense, $94,200
u. Loan collections, $12,500
v. Proceeds from sale of investments, $17,900, including $2,400 gain
w. Payment of short-term note payable by issuing long-term note payable, $56,000
x. Amortization expenses, $6,600
y. Income tax expense and payments, $38,000
z. Cash balance: March 31, 2014, $101,000; March 31, 2015, $38,200

1. Prepare Lane Furniture Gallery, Inc.’s statement of cash flows for the year ended March 31, 2015. Use the direct method for cash flows from operating activities. Include an accompanying schedule of noncash investing and financing activities.
2. Evaluate 2015 from a cash flows standpoint. Give your reasons.

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  • CreatedJuly 25, 2014
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