Arts de France Lte's comparative balance sheet at September 30, 2014, included the following balances: Transaction data

Arts de France Ltée's comparative balance sheet at September 30, 2014, included the following balances:

Transaction data for the year ended September 30, 2014 were:
a. Net income, $66,900
b. Depreciation expense on equipment, $8,500
c. Purchased long-term investments, $37,300
d. Sold land for $38,100, including $10,900 gain
e. Acquired equipment by issuing long-term note payable, $26,300
f. Paid long-term note payable, $24,700
g. Received cash of $51,900 for issuance of common shares
h. Paid cash dividends, $64,300
i. Acquired equipment by issuing short-term note payable, $22,000
Requirement
Prepare Arts de France's statement of cash flows for the year ended September 30, 2014, using the direct method to report operating activities. Also, prepare the accompanying schedule of non-cash investing and financing activities. All current accounts except short-term notes payable result from operating transactions. Prepare a supplementary schedule showing cash flows from operations by using the direct method. The accounting records provide the following: collections from customers, $343,100; interest received, $8,600; payments to suppliers, $216,400; payments to employees, $63,000; payment of income tax, $21,200; payment of interest, $10,700.

Transcribed Image Text:

Arts de France Ltée Balance Sheet As at September 30, 2014 and 2013 (Decrease) Current assets Accounts receivable Prepaid expenses -term investments Current liabilities: Notes payable, short-term. Accounts payable $ 22,000 Long-term note payable