Cooke Co. Cooke's balances at the beginning of the year were as follows:

Cash	$400
Inventory	$800
Accounts Receivable, net of allowance	$320
Property, Plant, and Equipment, net of Accumulated Depreciation	$1,400
Accounts Payable	$150
Loan Payable	$0
Retained Earnings	$1,030
Contributed Capital	$1,740

The following transactions or events happened to Cooke during the year:

2. January 1, Cooke received $1,200 under a 6-year installment loan with an interest rate of 6% per year. Payments are made on December 31 each year.
4. Acquired inventory of $1,300 on account at various times during the year.
6. Sold inventory costing $1,310 to customers. Customers promised to pay $2,420 for the inventory within 90 days after delivery.
8. Customers paid off $2,170 of the amounts they owed to the company during the year.
10. Company paid $1,230 to its suppliers during the year.
12. Cooke sold some equipment on January 4 for $385. The equipment had an original acquistion cost of cash of $900 and accumulated depreciation of $610 on January 4.
14. Paid cash of $750 for some new equipment on December 31.
16. Computed depreciation expense for the year of $270.
18. Made the loan payment of $244 on December 31.
20. Employees earned $440 of compensation during the year, and the company paid the employes $440 during the year.
22. Wrote off $115 of accounts receivable during the year. Determined that bad debt expense for the year should be $130.
24. Cooke declared and paid cash dividends of $525 during the year.

For your information, Cooke's net income for the year is $293. You should try to compute this number yourself.

Q1 In Cooke's statement of cash flows for the year, how much is reported as operating cash flows?

Q2 In Cooke's statement of cash flows for the year, how much is reported as investing cash flows?

Q3. In Cooke's statement of cash flows for the year, how much is reported as financing cash flows?

Answer rating: 100% (QA)

Q1 Operating Cash Flows Net cash collected from customers 570 Ne... View the full answer