The following information is for Redwood Incorporated for the year ended December 31, 2024. Redwood had a balance for cash and cash equivalents of $5,300 on January 1, 2024.

Cash Received from:
Customers	$ 1,910
Interest on investments	205
Sale of land	105
Issuance of common stock	610
Issuance of debt securities	2,010
Cash Paid for:
Interest on debt	$ 305
Income tax	81
Debt principal reduction	1,510
Purchase of equipment	4,200
Purchase of inventory	1,000
Dividends on common stock	205
Operating expenses	505

Required:

Prepare a statement of cash flows for the year using the direct method for operating activities.

Answer rating: 100% (QA)

The answer provided below has been developed in a clear step by step manner Step 1 Statement of cash ... View the full answer