To prepare the statement of cash flows, accountants for I-M-Mobile, Inc., have summarized 2012 activity in...

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To prepare the statement of cash flows, accountants for I-M-Mobile, Inc., have summarized 2012 activity in the Cash account as follows: Beginning balance Issuance of common stock Receipts of interest revenue Collections from customers Ending balance $87,900 60,700 15,600 308,700 95,900 Cash Payments of operating expenses 46,200 Payments of salaries and wages 64,500 Payment of note payable 78,000 Payment of income tax 8,000 Payments on accounts payable 101,200 Payments of dividends 1,200 Payments of interest 21,400 Purchase of equipment 56,500 Requirement 1. Prepare I-M-Mobile's statement of cash flows for the year ended December 31, 2012, using the direct method to report operating activities. To prepare the statement of cash flows, accountants for I-M-Mobile, Inc., have summarized 2012 activity in the Cash account as follows: Beginning balance Issuance of common stock Receipts of interest revenue Collections from customers Ending balance $87,900 60,700 15,600 308,700 95,900 Cash Payments of operating expenses 46,200 Payments of salaries and wages 64,500 Payment of note payable 78,000 Payment of income tax 8,000 Payments on accounts payable 101,200 Payments of dividends 1,200 Payments of interest 21,400 Purchase of equipment 56,500 Requirement 1. Prepare I-M-Mobile's statement of cash flows for the year ended December 31, 2012, using the direct method to report operating activities.

Answer rating: 100% (QA)

STATEMENT OF CASH FLOWS DIRECT METHOD Cash flows from operating activities C... View the full answer