DIRECT DEVELOPMENT OF A STATEMENT OF CASH FLOWS. According to Laurie Bond, controller, Transworld Export engaged in

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DIRECT DEVELOPMENT OF A STATEMENT OF CASH FLOWS. According to Laurie Bond, controller, Transworld Export engaged in the following transactions during a recent year:

Made credit sales of $1,007,000.

Collected receivables in the amount of $978,000.

Purchased merchandise on credit at a cost of $672,000.

Paid accounts payable in the amount of $657,000.

Incurred operating and financial expenses in the amount of $307,000. All operating and financial expenses were paid in cash when incurred.

Incurred depreciation expense (not included in transaction

e) in the amount of

$17,000.

Repaid a long-term note payable at maturity in the amount of $10,000.

Paid dividends in the amount of $7,000.

Purchased new equipment for cash in the amount of $37,000.

Sold common stock for $25,000 cash.

REQUIRED:

Prepare a statement of cash flows, using the direct method to determine cash flows from operations.

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Financial Accounting

ISBN: 9780070213555

5th Edition

Authors: Robert K. Eskew, Daniel L. Jensen

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