Question
2. The following data pertains to the Pretty Roses Company for the year of 2014: a) Salaries and wages: accrued, $175,000; paid in cash $200,000.
2. The following data pertains to the Pretty Roses Company for the year of 2014:
a) Salaries and wages: accrued, $175,000; paid in cash $200,000.
b) Depreciation, $50,000.
c) Interest expense, all paid in cash, $12,500.
d) Other expenses, all paid in cash, $112,000.
e) Income taxes accrued, $35,000; income taxes paid in cash, $33,000.
f) Bought plant and facilities for $365,000 cash.
g) Sales of $1,500,000, all on credit. Cash collections from customers, $1,250,000.
h) The cost of items sold was $750,000. Purchases of inventory totaled $825,000;
i) inventory and accounts payable were affected accordingly.
j) Cash payments on trade accounts payable were $700,000.
k) Issued long-term debt for $110,000 cash.
l) Paid cash dividends of $45,000.
Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities.
*Can you please write the answer text not picture
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started