To prepare the statement of cash flows, accountants for Kim & Associates, Inc., summarized 2018 activity in the Cash account as:

Requirement

Prepare the statement of cash flows of Kim & Associates, Inc., for the year ended December 31, 2018, using the direct method for operating activities.

Transcribed Image Text:

Cash 27,500 Payment on accounts payable 5,600 Payment of dividends 673,700 Payment of salaries and wages 75,000 Payment of interest Payment for equipment Payment of operating expenses Payment of notes payable Beginning balance 346,000 20,000 133,200 21,500 50,200 Receipts of interest Collections from customers Issuance of common stock 51,100 77,000 21,400 Payment of income tax 61,400 | Ending balance