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The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Wright Company. Additional information from Wright's

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
2024 2023
Assets
Cash $ 84 $ 50
Accounts receivable 91 95
Short-term investment 39 16
Inventory 96 90
Land 66 80
Buildings and equipment 555 440
Less: Accumulated depreciation (139) (95)
$ 792 676
Liabilities
Accounts payable $ 31 $ 39
Salaries payable 2 6
Interest payable 5 4
Income tax payable 8 13
Notes payable 0 23
Bonds payable 186 140
Shareholders Equity
Common stock 295 240
Paid-in capitalexcess of par 149 120
Retained earnings 116 91
$ 792 $ 676
WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2024
($ in thousands)
Revenues:
Sales revenue $ 400
Expenses:
Cost of goods sold $ 170
Salaries expense 43
Depreciation expense 44
Interest expense 13
Loss on sale of land 4
Income tax expense 56 330
Net income $ 70

Additional information from the accounting records:

  1. Land that originally cost $14,000 was sold for $10,000.
  2. The common stock of Microsoft Corporation was purchased for $23,000 as a short-term investment not classified as a cash equivalent.
  3. New equipment was purchased for $115,000 cash.
  4. A $23,000 note was paid at maturity on January 1.
  5. On January 1, 2024, bonds were sold at their $46,000 face value.
  6. Common stock ($55,000 par) was sold for $84,000.
  7. Net income was $70,000 and cash dividends of $45,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

image text in transcribed

WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2024 ( $ in thousands) Cash flows from operating activities: Cash inflows: \begin{tabular}{|l|l|} \hline From customers & \\ \hline Cash outflows: & \\ \hline To suppliers of goods & \\ \hline To employees & \\ \hline For interest & \\ \hline For income taxes & \\ \hline & \\ \hline \end{tabular} Net cash flows from operating activities. Cash flows from investing activities

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