Prepare statement of cash flowsdirect method (Learning Objective 4) 2025 min. The accounting records for Inez, Inc.,
Question:
Prepare statement of cash flows—direct method (Learning Objective 4)
20–25 min.
The accounting records for Inez, Inc., for the year ended September 30, 2014, contain the following information:
a. Purchase of fixed assets, $82,300
b. Proceeds from issuance of common stock, $55,000
c. Payment of dividends, $41,300
d. Collection of interest, $7,600
e. Payments of salaries, $87,400
f. Proceeds from sale of fixed assets, $17,800 g. Collections from customers, $637,000 h. Cash receipt of dividend revenue, $4,800 i. Payments to suppliers, $381,900 j. Depreciation expense, $63,400 k. Proceeds from issuance of long-term notes, $23,500 l. Payments of long-term notes payable, $46,800 m. Interest expense and payments, $13,200 n. Income tax expense and payments, $38,600 o. Cash balance: September 30, 2013, $26,700; September 30, 2014, $80,900 Requirement 1. Prepare Inez, Inc.’s statement of cash flows for the year ended September 30, 2014. Use the direct method for cash flows from operating activities.
AppendixLO1
Step by Step Answer:
Financial Accounting
ISBN: 9781292019543
3rd Global Edition Edition
Authors: Robert Kemp, Jeffrey Waybright, Pearson Education