Chapter 5 Comprehensive Problem:

I just need help with the statement of Cash Flows for Operating Activities

Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $140,000 131,000 $ 21,000 437,000 101,000 480,000 106,000 Tile, Etc. had the following transactions in 2018: 1. Purchased merchandise on account for $610,000 2. Sold merchandise that cost $450,000 for $950,000 on account. 3. Sold for $275,000 cash merchandise that had cost $172,000. 4. Sold merchandise for $220,000 to credit card customers. The merchandise had cost $108,000. The credit card company charges a 4 percent fee. 5. Collected $680,000 cash from accounts receivable. 6. Paid $640,000 cash on accounts payable. 7. Paid $151,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $90,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity. 10. Wrote off $8,100 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9). Prepare a statement of cash flows for 2018. (Amounts to be deducted should be indicated with a minus sign.) TILE, ETC., INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Inflow from customers Outflow for inventory Outflow for expenses $ 0 Net cash flow from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 0 0 140,000 $ 140,000