Question

Ridgewood Antiques had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1 was $361,000. Its 20X1 transactions affecting income or cash were (in thousands):
1. Sales of $1,600, all on credit. Cash collections from customers, $1,270.
2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable were affected accordingly.
3. Cash payments on trade accounts payable, $725.
4. Salaries and wages: accrued, $190; paid in cash, $180.
5. Depreciation, $48.
6. Interest expense, all paid in cash, $11.
7. Other expenses, all paid in cash, $100.
8. Income taxes accrued, $40; income taxes paid in cash, $35.
9. Bought plant and facilities for $235 cash.
10. Issued debt for $110 cash.
11. Paid cash dividends of $39.
Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.



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  • CreatedNovember 19, 2014
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