Exercise 12-13

The 2017 accounting records of Splish Brothers Inc. reveal these transactions and events.

Payment of interest		$ 19,700		Payment of salaries and wages		$ 104,410
Cash sales		94,560		Depreciation expense		31,520
Receipt of dividend revenue		35,460		Proceeds from sale of vehicles		1,599,640
Payment of income taxes		23,640		Purchase of equipment for cash		43,340
Net income		74,860		Loss on sale of vehicles		5,910
Payment for merchandise		191,090		Payment of dividends		27,580
Payment for land		145,780		Payment of operating expenses		55,160
Collection of accounts receivable		384,150

Prepare the cash flows from operating activities section using the direct method.

Exercise 12-13 The 2017 accounting records of Splish Brothers Inc. reveal these transactions and events. Payment of interest Cash sales Receipt of dividend revenue Payment of income taxes Net income Payment for merchandise Payment for land Collection of accounts receivable 19,700 Payment of salaries and wages 104,410 31,520 35,460 Proceeds from sale of vehicles 1,599,640 23,640 Purchase of equipment for cash 43,340 5,910 27,580 94,560 Depreciation expense 74,860 191,090 145,780 384,150 Loss on sale of vehicles Payment of dividends Payment of operating expenses Prepare the cash flows from operating activities section using the direct method