The summarized journal entries below show the total debits and credits to the Zebra Corporation’s Cash account during 2023.

RequiredUse the information to prepare a statement of cash flows for 2023. The cash flow from operating activities should be presented according to the direct method. In the statement, identify the entry that records each item of cash flow. Assume that the beginning balance of cash was $13,320.

Analysis Component:Consult the statement of cash flows you have just prepared and answer the following questions:1. Of the three activity sections (operating, investing, or financing), which section shows the largest cash flow for the year 2023?2. What was the purpose of the largest investing cash outflow in 2023?3. Were the proceeds larger from issuing debt or equity in 2023?4. Did the corporation have a net cash inflow or outflow from borrowing activity in 2023?

Transcribed Image Text:

a. Cash Common Shares Issued common shares for cash. b. Cash Notes Payable Borrowed cash with a note payable. c. Merchandise Inventory Cash Purchased merchandise for cash. d. Accounts Payable Cash Paid for credit purchases of merchandise. e. Wages Expense Cash Paid wages to employees. f. Rent Expense Cash Paid rent for buildings. g. Cash Sales Made cash sales to customers. h. Cash Accounts Receivable Collected accounts from credit customers. i. Machinery Cash Purchased machinery for cash. j. Long-Term Investments Cash Purchased long-term investments for cash. k. Interest Expense Notes Payable Cash Paid notes and accrued interest. I. Cash Dividend income Collected dividends from investments. m. Cash Loss on Investments Investments Sold investments for cash. n. Cash Accumulated Depreciation, Machinery Machinery Gain on Sale of Machinery Sold machinery for cash. o. Common Dividend Payable Cash Paid cash dividends to shareholders. p. Income Taxes Payable Cash Paid income taxes owed for the year. q. Common Shares Cash Purchased and retired common shares for cash. 144,000 240,000 48.000 120,000 60,000 42,000 300,000 180,000 213,600 216,000 21,600 38,400 10,640 21,000 3,000 72,000 42,000 51,000 48,000 22,800 144,000 240,000 48,000 120,000 60,000 42,000 300,000 180,000 213,600 216,000 60,000 10,640 24,000 96,000 18,000 51,000 48,000 22,800