Statement of cash flows

Zowine Company's condensed income statement for the year ended December 31, 20-2 was as follows:

net sales	$760,800
cost of goods sold	548,500
Gross profit	$212,300
operating expenses	30.400
income before taxes	$ 181,900
Income from tax expenses	63,665
Net Income	$118,235

Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, was as follows:

	20-2		20-1
Money		$65,435		$19,100
accounts receivable		70,100		101,200
Merchandise inventory		93,000		134.400
Accounts payable		49,800		83,300

The following additional information was obtained from Zowine's financial statements and subsidiary records for the year ended December 31, 20-2:

Acquired a new warehouse	$ 118,400
Bought new warehouse equipment	77,100
Issued a note to the bank	41,500
Additional Common Shares Issued:
Valor nominal	50.400
Capital paid in excess of par	21,700
Cash dividends declared and paid	29,000

Required:

Prepare a statement of cash flows for Zowine for the year ended December 31, 20-2. Use a minus sign to indicate any decrease in cash or cash outflows. 

Answer rating: 100% (QA)

ZOWINE COMPANY Statement of Cash Flows For the Year Ended December 31 202 Cash Flows from ... View the full answer