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Scroll down to complete all parts of this task. Steppenwolf Co. uses the direct method to prepare its statement of cash flows. Steppenwolf's financial statements
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Steppenwolf Co. uses the direct method to prepare its statement of cash flows. Steppenwolf's financial statements are as follows:
Comparative Balance Sheet | |||
12/31/Year 2 | 12/31/Year 1 | ||
Cash | $10,000 | $20,500 | |
Accounts receivable | 17,000 | 13,000 | |
Inventory | 25,000 | 20,000 | |
Supplies | 900 | 500 | |
Prepaid insurance | 800 | 2,000 | |
Equipment, net of accumulated depreciation | 36,000 | 40,000 | |
Total assets | $89,700 | $96,000 | |
Accounts payable | 25,000 | 31,000 | |
Salaries payable | 13,000 | 16,000 | |
Common stock, $10 par value | 25,000 | 25,000 | |
Additional paid-in capital | 14,000 | 14,000 | |
Retained earnings | 12,700 | 10,000 | |
Total liabilities and stockholders' equity | $89,700 | $96,000 | |
Income Statement | |||
For Year Ended 12/31/Year 2 | |||
Sales | $50,000 | ||
Cost of goods sold | 31,000 | ||
Gross profit | 19,000 | ||
Salary expense | 10,000 | ||
Supplies expense | 1,000 | ||
Insurance expense | 1,300 | ||
Depreciation expense | 4,000 | ||
Net income | $ 2,700 | ||
Using the direct method, prepare the operating activities section of the statement of cash flows for Steppenwolf for the year ended December 31, Year 2. Enter the appropriate amounts in the designated cells below. Indicate negative numbers using a leading minus (-) sign.
Cash flows from operating activities | Amount |
1. Cash received from customers | |
2. Cash paid to purchase inventory | |
3. Cash wages paid to employees | |
4. Cash paid for supplies | |
5. Cash paid for insurance | |
6. Net cash flow from operating activities |
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