Problem 12-21A

Check figures:

Net Cash Flow from Operating

Activities: $45,90

Net Decrease in Cash: $42,100.

LO 12-2, 12 Problem 12-21A Using financial statements to prepare a statement of cash flows- direct method The following financial statements were drawn from the records of Matrix Shoes: apter 12 Balance Sheets As of December 31 RES rom Operating 200 Cash: $80,200 Year 2 Year 1 $ 94,300 36,000 72,000 0 98,000 (47,800) 46,000 $298,500 $ 14,100 40,000 64,000 16,000 170,000 194,000) 30,000 $240,100 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and equity $ 24.000 15,000 800 0 0 150.000 108,700 $298,500 $ 26,400 10,000 1,400 1,000 24,000 110,000 67,300 $240,100 Income Statement For the Year Ended December 31, Year 2 $ 300,000 (144,000) 156,000 Sales revenue Cost of goods sold Gross margin Operating expenses Salary expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense Loss on the sale of equipment Net Income (88,000) (9,800) (6,400) 51,800 (2,400) (800) $ 48,600 Additional Information 1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash. 2. Paid a $7,200 cash dividend to owners. Required Analyze the data and prepare a statement of cash flows using the direct method. -SERIES B