E11-25B

compute cash flows by direct method

$113,000, respectively, Depreciation for the period iss ar $ tions of new plant assets total $30,000. Plant assets w is $13,000, and acquisi were sold at a $6 and ending Plant Assets, Net, balances 2 The 4) 10-15 min, The accounting records of Fence Up, Inc, reveal the followl www 64,000 Payment of loss. What were the cash proceeds of the sale? E11-258. Operating activities-direct method (Learning Objective salaries and wages Depreciatio... $30,000 15,000 18,000 Net Income20,000 Payment of income tax .. Collection of 7,000 Payment of interest. olleeu...36,000 dividend revenue... Payment to suppliers 36,000 Payment of Collections from customers.. 113,000 7 000 dividends.. Requirements 1. Compute cash flows from operating activities by the direct method 2. Evaluate the operating cash flow of Fence Up, Inc. Give the reason for your evaluation. 1-268. Prepare statement of cash flows-direct method (Learning Objective 4) 20-25 min. The income statement and additional data of Rayborn Services, Inc., follow Rayborn Services, Inc. Income Statement Year Ended April 30, 2010 Revenues: Sales Revenue Dividend Revenue Total Reven $262,000