Question:
To prepare the statement of cash flows, accountants for Franklin Electric Company have summarized 20X8 activity in 2 accounts as follows:
Required
1. Prepare the statement of cash flows of Franklin Electric Company for the year ended December 31, 20X8, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.
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Cash Beginning balance Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 53,600 21,200 661,700 47,300 17,100 Payments on accounts payable Payments of dividends Payments of salaries and wages Payments of interest Purchase of equipment Payments of operating expenses Payment of long-term note payable Purchase of treasury stock Payment of income tax 399,100 27,200 143,800 26,900 31,400 34,300 41,300 26,400 18,900 Ending balance 51,600 Common Stock Beginning balance Issuance for cash Issuance to acquire land Issuance to retire note payable Ending balance 84,400 47,300 80,100 19,000 230,800 Franklin Electric Company Income Statement Year Ended December 31, 20X8 Revenues: $689,300 17,100 706,400 Sa les revenue Dividend revenue Total revenue Expenses and losses: Cost of goods sold...$402,600 Sa lary and wage expense..150,800 Depreciation expens19,300 Other operating expense.. Interest expense Income tax expense Loss on sale of investments 44,100 28,800 16,200 1,100 Total expenses and losses 662,900 $43,500 Net inco Franklin Electric Company Selected Balance Sheet Data 20X8 Increase (Decrease) Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses $ (2,000) 27,600 (11,800) 600 (22,300) 12,100 80,100 Long-term investments Equipment, net Land Current liabilities: $ (8,300) 1,900 7,000 10,400 (2,700) Long-term note payable...(60,300) 146,400 16,300 (26,400) Interest payable Sa lary payable Other accrued liabilities Income tax payable Common stock Retained earnings Treasury stock