5XU Corp. Statement of Cash Flows (Direct method) For the Year Ended May 31, 2020 Cash flows from Operating Activities Cash collections from customers $1,326,600 Less: Cash payments Cash payments to suppliers ($795,700) Cash payments to employees ($218,800) Cash payments for operating expenses ($26,600) Cash paid for interest expense ($64,600) Cash paid for income taxes ($65,400) Total cash payments ($1,171,100) Net Cash provided by Operating Activities $155,500 Cash flows from Investing Activities Purchases of Plant assets ($44,000) Net Cash used by Investing Activities ($44,000) Common shares Cash flows from Financing Activities Opening balance $280,000 Repayment of mortgage payable ($25,000) Plant assets $51,000 Issue of Shares $4, 750 Closing balance $335,750 Bank $4, 750 Dividends Paid ($78,000) $335,750 $335,750 Net Cash provided by Financing Activities ($98,250) Net increase( decrease) in cash $13,250 Cash balance at beginning of the year $20,000 Cash balance at end of the year $33,250 Non-cash investing and financing activity: Purchase of Plant assets by issue of common shares $51,000 Working notes: i) Amount of cash received from Customers Sales $1,345,800 Less: Increase in Accounts receivable $19,200 Net cash received from customers $1,326,600 ii) Cost of inventory purchased Cost of Goods sold $814,000 Less: Decrease in inventory $10,300 Merchandise purchase $803,700 Amount of cash paid to suppliers of merchandise cost of purchase $803,700 Less: Increase in Accounts payable -$8,000 Cash paid to Suppliers $795,700 iii) Amount of cash paid to employees Salaries and wages expense $207,800 Add: Decrease in salaries payable $11,000 Cash paid to employees $218,800 iv) Amount of cash paid for operating expenses Operating expenses $24,800 Add: Increase in prepaid expenses $1,800 Cash paid for operating expenses $26,600 v) Cash paid for interest expense Interest expense $66,700 Less: Increase in interest payable -$2,100 Cash paid for Interest expense $64,600 vi) Cash paid for income taxes Income taxes $65,400 Cash paid for income taxes $65,400