Operating Cash Flows (Direct Method)

Cost of goods sold $87,000

Inventory, beg. year 19,000

Inventory, end of year 23,000

Account payable, beg. year 11,000

Accounts payable, end of year 8,000

How do i calculate cash paid for merchandise purchased??

Statement of Cash Flows (Indirect Method)

DAIR COMPANY

Income Statement

For Year Ended December 31,2017

Sales $ 700,000

Cost of goods sold $ 440,000

Wages and other operating expenses 95,000

Depreciation expense 22,000

Amortization expense 7,000

Interest expense 10,000

Income tax expense 36,000

Loss on bond retirement 5,000 615,000

Net income85,000

DAIR COMPANY

Balance Sheets

Dec. 31, 2017 Dec. 31, 2016

Assets

Cash$ 27,000 $ 18,000

Accounts receivable 53,000 48,000

Inventory 103,000 109,000

Prepaid expenses 12,000 10,000

Plant assets 360,000 336,000

Accumulated depreciation (-)87,000 (-)84,000

Intangible assets 43,000 50,000

Total assets . $ 511,000 $ 487,000

Liabilities and Stockholders' Equity

Accounts payable $ 32,000 $ 26,000

Interest payable 4,000 7,000

Income tax payable 6,000 8,000

Bonds payable 60,000 120,000

Common stock 252,000 228,000

Retained earnings 157,000 98,000

Total liabilities and equity $ 511,000 $ 487,000

During 2017, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. Also in 2017, new equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable, and bonds payable of $120,000 were retired for cash at a loss. A $26,000 cash dividend was declared and paid in 2017. Any stock issuances were for cash.

I was able to successfully compute the change in cash that occurred in 2017. I am struggling preparing a 2017 statement of cash flows using the indirect method.

Can you help me figure out what the retirement of Bonds Payable is??

I thought it was 60,000 but that is incorrect.

Can you help me figure out what the Issuance of Common Stock is??

I thought it was -224,000, but that is incorrect.

Supplemental Cash Flow Disclosures

How do I figure out cash paid for interest??

I got 3,000 which is incorrect.

How do I figure out cash paid for income taxes??

I got -2,000 which is incorrect.

Statement of Cash Flows (Direct Method)

Again, I was able to successfully compute the change in cash that occurred in 2017. I am struggling preparing a 2017 statement of cash flows, now using the direct method.

How do i figure out cash paid for merchandise purchased? I got 331,000 which is incorrect.

How do i figure out Cash paid for wages & other operating expenses??

How do i figure out Cash paid for interest??

How do i figure out Cash paid for income taxes??

How do i figure out Retirement of bonds payable??

How do i figure out Issuance of common stock??

How do i figure out Payment of dividends??

Supplemental Cash Flow Disclosures

How do i figure out Cash Paid for Interest??

How do i figure out Cash Paid for Income Taxes??