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Creating Statement of Cash Flows Prepare a statement of cash flows (direct method). Superb Digital Services, Inc. has provided the following data from the company's
Creating Statement of Cash Flows Prepare a statement of cash flows (direct method). Superb Digital Services, Inc. has provided the following data from the company's records for the year just ended. a. Collection of interest S5.700 b. Cash sales $252.000 c. Credit sales $675,500 Proceeds from sale of investment S12.300 e. Gain on sale of investment $2.500 f. Payments to suppliers $572,900 g. Cash payments to purchase plant assets S52,100 h. Depreciation expense $53,800 i. Salaries expense $77,500 j Payment of short-term note payable by issuing common stock $72,100 k Cost of goods sold $567,600 I Proceeds from issuance of note payable $24,300 m. Income tax expense and payment $38,600 n Proceeds from issuance of common stock S22,000 0. Cash receipt of dividend revenue S6,700 p. Interest revenue $6.000 q. Payment of cash dividends $28,900 r. Collections of accounts receivable $574.300 s. Amortization expense $3,400 t. Payments on long-term notes payable S45.300 u. Interest expense and payments S12,100 v. Purchase of equipment by issuing common stock to seller S17.500 w. Payment of salaries $74,500 x. Proceeds from sale of plant assets $24,700 y. Loss on sale of plant assets 53.500 z. Cash and cash equivalents balance, begining of year $25,700 Attempt the following exercises to complete this assessment successfully: 1. Prepare the statement of cash flows for Superb Digital Services, Inc., using the direct method for cash flows from operations. Note that you will need to calculate the ending balance of cash and cash equivalents. Include a schedule of noncash investing and financing activities. 2 Evaluate Superb's cash flows for the year. Discuss each of the categories of cash flows in your response
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