Prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities.

Cash and cash equivalents, December 31 prior year-end	$ 30,000
Cash and cash equivalents, December 31 current year-end	84,360
Cash received as interest	3,000
Cash paid for salaries	87,000
Bonds payable retired by issuing common stock (no gain or loss on retirement)	110,000
Cash paid to retire long-term notes payable	150,000
Cash received from sale of equipment	73,500
Land purchased by issuing long-term notes payable	63,800
Cash paid for store equipment	28,500
Cash dividends paid	18,000
Cash paid for other expenses	48,000
Cash received from customers	582,000
Cash paid for inventory	302,640

Answer rating: 100% (QA)

Statement of Cash Flows Direct Method for the Year Ended December 31 Operating Activities Cash recei... View the full answer