Question
Statement of Cash Flows Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $765,000 Cost of goods
Statement of Cash Flows
Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows:
Net sales | $765,000 |
Cost of goods sold | 550,000 |
Gross profit | $215,000 |
Operating expenses | 30,000 |
Income before taxes | $185,000 |
Income tax expense | 65,000 |
Net income | $120,000 |
Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, was as follows:
20-2 | 20-1 | |||
Cash | $60,000 | $20,000 | ||
Accounts receivable | 70,000 | 100,000 | ||
Merchandise inventory | 80,000 | 125,000 | ||
Accounts payable | 55,000 | 90,000 |
The following additional information was obtained from Zowine's financial statements and auxiliary records for the year ended December 31, 20-2:
Acquired a new warehouse | $120,000 |
Bought new warehouse equipment | 80,000 |
Issued a note to the bank | 40,000 |
Issued additional common stock: | |
Par value | 50,000 |
Paid-in capital in excess of par | 20,000 |
Declared and paid cash dividends | 30,000 |
Required:
Prepare a statement of cash flows for Zowine for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.
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Statement of Cash Flows
Prepare a statement of cash flows for Zowine for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.
Zowine Company | ||
Statement of Cash Flows | ||
For Year Ended December 31, 20-2 | ||
Cash flows from operating activities: | ||
Net income | $fill in the blank 20f41b08cfff05c_2 | |
Adjustments for changes in current assets and liabilities related to operating activities: | ||
fill in the blank 20f41b08cfff05c_4 | ||
fill in the blank 20f41b08cfff05c_6 | ||
fill in the blank 20f41b08cfff05c_8 | ||
Net cash provided by operating activities |
Cash flows from operating activities: | ||
Net income | $fill in the blank 20f41b08cfff05c_2 | |
Adjustments for changes in current assets and liabilities related to operating activities: | ||
fill in the blank 20f41b08cfff05c_4 | ||
fill in the blank 20f41b08cfff05c_6 | ||
fill in the blank 20f41b08cfff05c_8 | ||
Net cash provided by operating activities | $fill in the blank 20f41b08cfff05c_9 | |
Cash flows from investing activities: | ||
$fill in the blank 20f41b08cfff05c_11 | ||
fill in the blank 20f41b08cfff05c_13 | ||
Total cash used by investing activities | fill in the blank 20f41b08cfff05c_14 | |
Cash flows from financing activities: | ||
$fill in the blank 20f41b08cfff05c_16 | ||
fill in the blank 20f41b08cfff05c_18 | ||
fill in the blank 20f41b08cfff05c_20 | ||
Net cash provided by financing activities | fill in the blank 20f41b08cfff05c_21 | |
$fill in the blank 20f41b08cfff05c_23 | ||
Cash, January 1, 20-2 | fill in the blank 20f41b08cfff05c_24 | |
Cash, December 31, 20-2 | $fill in the blank 20f41b08cfff05c_25 |
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