Instructions Statement of Cash Flows 3 Cash payments for operating expenses 4 (1,380,000.00) (955,000.00) (125,000.00) 5 Cash payments for income taxes Net cash flow from operating activities 6 $490,000.00 7 9 10 Cash flows from investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities $175,000.00 (500,000.00) (200,000.00) 11 12 (525,000.00) 13 15 14 Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities $125,000.00 16 (85,000.00) 400,000.00 18 net increase 19 Cash at the beginning of the year 20 Cash at the end of the year $5,000.00 150,000.00 $155,000.00 Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions 6 Other operating expenses Total operating expenses 950,000.00 7 1,050,000.00 Operating income 9 Other income: $550,000.00 10 Gain on sale of investments 75,000.00 11 Income before income tax 12 Income tax expense $625,000.00 125,000.00 13 Net income $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash, b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year d. The common stock was issued for cash. e. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of th choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign Instructions Statement of Cash Flows 3 Cash payments for operating expenses 4 (1,380,000.00) (955,000.00) (125,000.00) 5 Cash payments for income taxes Net cash flow from operating activities 6 $490,000.00 7 9 10 Cash flows from investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities $175,000.00 (500,000.00) (200,000.00) 11 12 (525,000.00) 13 15 14 Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities $125,000.00 16 (85,000.00) 400,000.00 18 net increase 19 Cash at the beginning of the year 20 Cash at the end of the year $5,000.00 150,000.00 $155,000.00 Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions 6 Other operating expenses Total operating expenses 950,000.00 7 1,050,000.00 Operating income 9 Other income: $550,000.00 10 Gain on sale of investments 75,000.00 11 Income before income tax 12 Income tax expense $625,000.00 125,000.00 13 Net income $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash, b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year d. The common stock was issued for cash. e. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of th choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign
