Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: Collections from customers $400,000 Interest on notes receivable 9,000 Collection of
The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: Collections from customers $400,000 Interest on notes receivable 9,000 Collection of notes receivable. 45,000 Sale of investments 25,000 Issuance of notes payable 130,000 Cash Paid for: Purchase of inventory Interest on notes payable Purchase of equipment 190,000 8,000 71,000 Salaries to employees Payment of notes payable 76,000 31,000 Dividends to shareholders 26,000 The balance of cash and cash equivalents at the beginning of 2021 was $17,000. Required: Prepare the statement of cash flows assuming that Bluebonnet prepares its financial statements according to International Financial Reporting Standards. Where IFRS allows flexibility, use the classification used most often in IFRS financial statements. (Amounts to be deducted should be indicated with a minus sign.) deducted should be indicated with a minus sign.) BLUEBONNET BAKERS Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers Interest on notes receivable Purchase of equipment Interest on notes payable Cash paid for salaries Collection of notes receivable Net cash flows from operating activities Cash flows from investing activities: Collection of notes receivable Sale of investments Purchase of equipment $ 400,000 9,000 190,000 $ (8,000) $ (76,000) $ 591,000 45,000 25,000 (71,000) Cash paid for merchandise Net cash flows from operating activities Cash flows from investing activities: Collection of notes receivable Sale of investments Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Issuance of notes payable Payment of notes payable Dividends paid to shareholders Net cash flows from financing activities Net increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 45,000 25,000 (71,000) $ 591,000 (1,000) 13,000 (31,000) (26,000) $ SA (44,000) 546,000 17,000 563,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started