Question
Williams Digital Services, Inc., has provided the following data from the company's records for the year just ended December 31: a. Collection or interest.............................. $5,200
Williams Digital Services, Inc., has provided the following data from the company's records for the year just ended December 31: a. Collection or interest.............................. $5,200 b. Cash sales....................................... $252,500 c. Credit sales....................................... $673,500 d. Proceeds from sale of long-term investment... 12,300 e. Gain on sale of investment........................ 2,100 f. Payments to suppliers........................... $570,000 g. Cash payment to purchase plant assets.......,,,,, 52,400 h. Depreciation expense.............................. 63,200 i. Salary expense....................................... 77,100 j. Payment of short-term note payable............ 71,700 k. Costs of goods sold............................... 567,000 l. Proceeds from insurance of long-term note payable....... 24,900 m. Income tax expense and payment............................. 38,000 n. Proceeds for issuance of common stock.................. 21,500 o. Receipt of cash dividends...................................... 6,600 p. Interest revenue.................................................. 6,100 q. Payment of cash dividends..................................... 28,200 r. Collections of accounts receivable.............................. 572,000 s. Amortization expense............................................. 3,700 t. Payments on long-term notes payable................................. 44,500 u. Interest expense and payments....................................... 2,400 v. Purchase of equipment by issuing common stock to the seller........ 72,900 w. Payment of salaries.......................................................... 74,400 x. Proceeds from sale of plant assets......................................... 24,700 y. Loss on sale of plant assets................................................. 3,800 z. Cash and cash equivalents balance, beginning of the year........... 25,500 Requirements 1. Prepare the statement of cash flows for Williams Digital Services, Inc., using the direct method for cash flows from operations. Note that you will need to calculate the ending balance of cash and cash equivalents. Include a schedule of noncash investing and financing activities. 2. Evaluate Williams' cash flows for the year. Discuss each of the categories of cash flows in your response.
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