Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is information of cash transactions of Tiger Inc. for the year of 2019. Prepare a statement of cash flow using direct method. ( Numbers

Following is information of cash transactions of Tiger Inc. for the year of 2019. Prepare a statement of cash flow using direct method. (Numbers are in thousands)

Cash at beginning of period

$50,000.00

Cash payment for income taxes

$0.00

Cash payment for interest expense

$30,000.00

Cash payment for operating expenses

$75,000.00

Cash payment for purchase of building

$300,000.00

Cash payment for purchase of equipment

$15,000.00

Cash payment to suppliers

$200,000.00

Cash receipts from customers

$500,000.00

Cash received from issuance of common stock

$150,000.00

Cash received from sale of equipment

$45,000.00

Payment of cash dividends

$0.00

Using direct method, prepare a statement of cash flow for the year of 2019 below -

Cash flows from operating activities

Cash receipts from customers

Less: Cash payments

To suppliers

For operating expenses

For interest expense

For income taxes

Net cash provided by operating activities

Cash flows from investing activities

Sale of equipment

Purchase of building

Purchase of equipment

Net cash used by investing activities

Cash flows from financing activities

Issuance of common stock

Payment of cash dividends

Net cash used by financing activities

Net increase in cash

Cash at beginning of period

Cash at end of period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

978-0324787351

Students also viewed these Accounting questions