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The values are not correct. They should correspond to the given chart. Thanks! Northeast Ale Company is a microbrewery in Anchorage. By the end of
The values are not correct. They should correspond to the given chart. Thanks!
Northeast Ale Company is a microbrewery in Anchorage. By the end of 20X1, the company's cash balance had dropped to $10,000, despite net income of $450,000 in 20X1. Its transactions affecting income or cash in 20X1 were as follows (in thousands): Click the icon to view the transactions.) Requirement 1. Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules. 7. 1. Sales were $3,164, all on credit. Cash collections from customers were $2,965. 2. The cost of items sold was $2,021. 3. Inventory increased by $79. 4. Cash payments on trade accounts payable were $2,075. 5. Payments to employees were $324; accrued wages payable decreased by $32. 6. Other operating expenses, all paid in cash, were $123. Interest expense, all paid in cash, was $26. Income tax expense was $112; cash payments for income taxes were $137. 9. Depreciation was $140. 10. A warehouse was acquired for $539 cash. 11. Equipment was sold for $24 cash; original cost was $198, accumulated depreciation was $174. 12. Received $27 for issue of common stock. 13. Retired long-term debt for $20 cash. 14. Paid cash dividends of $87. 8. 2,787 (110) (303) (1,745) (22) (112) (2,292) 495 Cash Flows from Operating Activities Cash collections from customers Cash payments Cash payments for other operating expenses Cash payments to employees Cash payments to suppliers Cash payments for interest Cash payments for income taxes Total cash payments Net cash provided by (used in) operating activities Cash Flows from Investing Activities Purchase of warehouse Proceeds from sale of equipment Net cash provided by used for) investing activities Cash Flows from Financing Activities Payment for retirement of long-term debt Proceeds from issuance of common stock Payment of dividends Net cash provided by (used in) financing activities Net increase (decrease) in cash Cash, January 1, 20X1 (547) 47 (500) (21) 29 (87) (79) (84) 101 $ 17 Cash, December 31, 20X1Step by Step Solution
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