The Ladies Store presented the statement of cash flows for the year ended December 31, 2002, shown
Question:
The Ladies Store presented the statement of cash flows for the year ended December 31, 2002, shown below.
THE LADIES STORE Statement of Cash Flows For Year Ended December 31, 2002 Cash received:
From sales to customers $150,000 From sales of bonds 100,000 From issuance of notes payable 40,000 From interest on bonds 5,000 Total cash received 295,000 Cash payments:
For merchandise purchases 110,000 For purchase of truck 20,000 For purchase of investment 80,000 For purchase of equipment 45,000 For interest 2,000 For income taxes 15,000 Total cash payments 272,000 Net increase in cash $ 23,000 Note: Depreciation expense was $15,000.
Required
a. Prepare a statement of cash flows in proper form.
b. Comment on the major flows of cash.
Step by Step Answer:
Financial Reporting And Analysis Using Financial Accounting Information
ISBN: 9780324023534
8th Edition
Authors: Charles H Gibson