Question
Concord Corporation had the following 2021 income statement data: Sales $197,170 Cost of goods sold 120,000 Gross profit 77,170 Operating expenses (includes depreciation of $20,460)
Concord Corporation had the following 2021 income statement data:
Sales | $197,170 | ||
Cost of goods sold | 120,000 | ||
Gross profit | 77,170 | ||
Operating expenses (includes depreciation of $20,460) | 46,070 | ||
Profit | $ 31,100 |
The following accounts increased during 2021 by the amounts shown: Accounts Receivable, $17,090; Inventory, $10,560; Accounts Payable, $13,400; Mortgage Payable $40,000.
(a)
Prepare the cash flows from operating activities section of Concords 2021 statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Concord Corporation Statement of Cash Flows (Partial) Direct Method | ||
Cash at Beginning of PeriodCash at End of PeriodFinancing ActivitiesInvesting ActivitiesOperating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
Cash Payments to SuppliersIncrease in Salaries PayableDecrease in Salaries PayableDecrease in InventoriesCash Payments for Operating ExpensesIncrease in Accounts ReceivableTaxes PaidCash Receipts from CustomersDividends ReceivedDecrease in Accounts ReceivableIncrease in Inventories | $ | |
Cash Payments to SuppliersDecrease in Accounts ReceivableIncrease in Salaries PayableDecrease in InventoriesDecrease in Salaries PayableCash Receipts from CustomersCash Payments for Operating ExpensesIncrease in InventoriesDividends ReceivedTaxes PaidIncrease in Accounts Receivable | $ | |
Increase in InventoriesTaxes PaidCash Payments for Operating ExpensesIncrease in Accounts ReceivableDividends ReceivedDecrease in Accounts ReceivableDecrease in InventoriesIncrease in Salaries PayableCash Receipts from CustomersCash Payments to SuppliersDecrease in Salaries Payable | ||
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | $ |
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