P11-64A. (Learning Objectives 2, 3, 4: Prepare the statement of cash flows direct and indirect methods) To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2018 activity in two accounts Cash Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 34,900 Payments on accounts payable 18,700 Payments of dividends 661,900 Payments of salaries and wages 37,900 Payments of interest 17,000 Purchase of equipment 387,000 27,000 143,100 23,100 31,500 Payments of other operating expenses 34,700 Payment of long-term note payable 4,500 21,200 Purchase of treasury stock Payment of income tax 18 Ending Bal 42,900 Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 89,100 37,900 53,000 15 195,000 Ronklin Electric's 2018 income statement and balance sheet data follow: Ronklin Electric Company Income Statement Year Ended December 31, 2018 2 Revenues es revenue 17,000 Total revenue 6 Expenses and losses 7 Cost of goods sold 8 Salary and wage expense 9 Depreciation expense 10 0ther operating 11 Interest expense $390,500 135,300 19400 5,200 20,900 15,800 e tax expense s on sale of investments s and losses 13 14 15 Total 13,500 P11-64A. (Learning Objectives 2, 3, 4: Prepare the statement of cash flows direct and indirect methods) To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2018 activity in two accounts Cash Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 34,900 Payments on accounts payable 18,700 Payments of dividends 661,900 Payments of salaries and wages 37,900 Payments of interest 17,000 Purchase of equipment 387,000 27,000 143,100 23,100 31,500 Payments of other operating expenses 34,700 Payment of long-term note payable 4,500 21,200 Purchase of treasury stock Payment of income tax 18 Ending Bal 42,900 Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 89,100 37,900 53,000 15 195,000 Ronklin Electric's 2018 income statement and balance sheet data follow: Ronklin Electric Company Income Statement Year Ended December 31, 2018 2 Revenues es revenue 17,000 Total revenue 6 Expenses and losses 7 Cost of goods sold 8 Salary and wage expense 9 Depreciation expense 10 0ther operating 11 Interest expense $390,500 135,300 19400 5,200 20,900 15,800 e tax expense s on sale of investments s and losses 13 14 15 Total 13,500
