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The accounting staff of Harris Company has assembled the following information for the year ended December 31, 2011: Cash sales $ 723,000 Credit sales 2,500,000
The accounting staff of Harris Company has assembled the following information for the year ended December 31, 2011:
Cash sales | $ | 723,000 |
Credit sales | 2,500,000 | |
Collections on accounts receivable | 2,205,000 | |
Cash transferred from the money market fund to the general bank account | 250,000 | |
Interest and dividends received | 100,000 | |
Purchases (all on account) | 1,800,000 | |
Payments on accounts payable to merchandise suppliers | 1,470,000 | |
Cash payments for operating expenses | 1,055,000 | |
Interest paid | 180,000 | |
Income taxes paid | 95,000 | |
Loans made to borrowers | 500,000 | |
Collections on loans (excluding receipts of interest) | 260,000 | |
Cash paid to acquire plant assets | 3,100,000 | |
Book value of plant assets sold | 654,300 | |
Loss on sales of plant assets | 81,600 | |
Proceeds from issuing bonds payable | 2,500,000 | |
Dividends paid | 120,000 | |
Cash and cash equivalents, Jan. 1 | 489,000 | |
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Instructions: |
Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) |
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