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The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: Collections from customers $ 390,000 Interest on notes receivable 8,500 Collection of
The following summary transactions occurred during 2021 for Bluebonnet Bakers:
Cash Received from: | |||
Collections from customers | $ | 390,000 | |
Interest on notes receivable | 8,500 | ||
Collection of notes receivable | 44,000 | ||
Sale of investments | 24,000 | ||
Issuance of notes payable | 125,000 | ||
Cash Paid for: | |||
Purchase of inventory | 185,000 | ||
Interest on notes payable | 7,500 | ||
Purchase of equipment | 70,000 | ||
Salaries to employees | 75,000 | ||
Payment of notes payable | 30,000 | ||
Dividends to shareholders | 25,000 | ||
The balance of cash and cash equivalents at the beginning of 2021 was $16,000. Required: Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)
Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 $ 0
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