Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone please help me with this questio ASAP?! It requires the proper format of operating activities, investing activities and then financing activities using the

Can someone please help me with this questio ASAP?! It requires the proper format of operating activities, investing activities and then financing activities using the direct method. Thank you in advandance ! image text in transcribed
6 As the accountant at O'Donnell Industries, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the direct method and have gathered following data from the accounting records: the Payment of long-term debt $200,000 Collections on accounts receivable 210,600 Acquisition of equipment by issuing long-term note payable 85,000 Interest revenue Credit sales 392,700 Loan collections 47,400 Cash received from sale of investments, 36,100 including $4,200 gain 103,800 Salary expense Cash payments to purchase property, plant, and equipment 76,000 417,300 Cost of goods sold 13,700 Collection of interest revenue 48,500 Payment of cash dividends 39,200 Income tax expense and payments Cash received from sale of property, plant, and equipment, 31,800 including $6,900 loss 19,300 Cash receipt of dividend revenue 94,100 Payments of salaries Amortization expense 203,900 Cash sales 300,000 Cash received from issuance of common shares 75,000 Loan to another company 60,400 Interest expense and payments shares converted into common 250,000 294,700 Payments to suppliers 55,500 Cash balance: December 31, 2009 30,400 Cash balance: December 31, 2010 Prepare the cash flow statement for the year ended December 31, 2010, using the direct method, and include a schedule of noncash investing and financing activities if necessary

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CAT Paper 8 Implementing Audit Procedures

Authors: BPP Professional Education

1st Edition

0751723126, 978-0751723120

More Books

Students also viewed these Accounting questions

Question

What does EMG measure? How is EMG interpreted?

Answered: 1 week ago

Question

15. Argue that E = EF EFc, E F = E FEc.

Answered: 1 week ago