Statement of Cash Flows (Direct Method) Wolff Company's income statement and comparative balance sheets follow. WOLFF COMPANY Income Statement For Year Ended December 31, 2019 Sales $ $635,000 Cost of goods sold $430,000 Wages expense 86.000 Insurance expense B,000 Depreciation expense 17,000 Interest expense 9,000 Income tax expense 29,000 579,000 Nel income $56,000 WOLFF COMPANY Balance Sheet Dec 31, 2019 Dec 31, 2018 Assets Cash $11,000 $5,000 Accounts receivable 41,000 32,000 Inventory 90,000 60,000 Prepaid insurance 5,000 7,000 PPC 250,000 195.000 Accumulated depreciation 168,000) (51,000) Total assets $329,000 $248.000 Liabilities and Stockholders' Equity Accounts payable $7,000 $10,000 Wages payable 9,000 6,000 Income tax payable 7,000 8,000 Bonds Payable 130,000 75,000 Common stack 90.000 90,000 Retained earnings B6,000 59,000 Total liabilities and equity $329,000 $248,000 $ Cash dividends of 529,000 were declared and paid during 2019. Also in 2019, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Compute the change in cash that occurred during 2019. Note: Do not use a negative sign with your answer. $ b. Prepare a 2019 statement of cash flows using the direct method. Note: Use a negative sign to indicate a cash outflow. Wolff Company Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities Cash Received from Customers $ Cash Paid to Employees Cash Paid for Insurance Cash Paid for Interest Cash Paid for Income Taxes $ Investing Activities Financing Activities Payment of Dividends Net Increase in Cash Cash at Beginning of Year Cash at End of Year $ Statement of Cash Flows (Direct Method) Wolff Company's income statement and comparative balance sheets follow. WOLFF COMPANY Income Statement For Year Ended December 31, 2019 Sales $ $635,000 Cost of goods sold $430,000 Wages expense 86.000 Insurance expense B,000 Depreciation expense 17,000 Interest expense 9,000 Income tax expense 29,000 579,000 Nel income $56,000 WOLFF COMPANY Balance Sheet Dec 31, 2019 Dec 31, 2018 Assets Cash $11,000 $5,000 Accounts receivable 41,000 32,000 Inventory 90,000 60,000 Prepaid insurance 5,000 7,000 PPC 250,000 195.000 Accumulated depreciation 168,000) (51,000) Total assets $329,000 $248.000 Liabilities and Stockholders' Equity Accounts payable $7,000 $10,000 Wages payable 9,000 6,000 Income tax payable 7,000 8,000 Bonds Payable 130,000 75,000 Common stack 90.000 90,000 Retained earnings B6,000 59,000 Total liabilities and equity $329,000 $248,000 $ Cash dividends of 529,000 were declared and paid during 2019. Also in 2019, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Compute the change in cash that occurred during 2019. Note: Do not use a negative sign with your answer. $ b. Prepare a 2019 statement of cash flows using the direct method. Note: Use a negative sign to indicate a cash outflow. Wolff Company Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities Cash Received from Customers $ Cash Paid to Employees Cash Paid for Insurance Cash Paid for Interest Cash Paid for Income Taxes $ Investing Activities Financing Activities Payment of Dividends Net Increase in Cash Cash at Beginning of Year Cash at End of Year $
