Denali Ale Company is a microbrewery in Anchorage. By the end of 20X1, the companys cash balance
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1. Sales were $3,003, all on credit. Cash collections from customers were $2,890.
2. The cost of items sold was $2,096.
3. Inventory increased by $56.
4. Cash payments on trade accounts payable were $2,130.
5. Payments to employees were $305; accrued wages payable decreased by $24.
6. Other operating expenses, all paid in cash, were $105.
7. Interest expense, all paid in cash, was $26.
8. Income tax expense was $105; cash payments for income taxes were $107.
9. Depreciation was $151.
10. A warehouse was acquired for $540 cash.
11. Equipment was sold for $37 cash; original cost was $196, accumulated depreciation was $159.
12. Received $28 for issue of common stock.
13. Retired long-term debt for $21 cash.
14. Paid cash dividends of $89.
Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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