MPG, Inc., accountants have developed the following data from the companys accounting records for the year ended
Question:
(a) Purchase of plant assets, $59,400.
(b) Cash receipt from issuance of notes payable, $46,100.
(c) Payments of notes payable, $44,000.
(d) Cash receipt from sale of plant assets, $24,500.
(e) Cash receipt of dividends, $4,800.
(f) Payments to suppliers, $374,300.
(g) Interest expense and payments, $12,000.
(h) Payments of salaries, $88,000.
(i) Income tax expense and payments, $37,000.
(j) Depreciation expense, $59,900.
(k) Collections from customers, $605,500.
(l) Payment of cash dividends, $49,400.
(m) Cash receipt from issuance of common stock, $64,900.
(n) Cash balance: April 30, 2011, $40,000; April 30, 2012, $121,700.
Requirement
1. Prepare MPG’s statement of cash flows for the year ended April 30, 2012. Use the direct method for cash flows from operating activities.
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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