The accounting records for L. Lee Associates, Inc. for the year ended April 30, 2014, contain the

Question:

The accounting records for L. Lee Associates, Inc. for the year ended April 30, 2014, contain the following information:

a. Purchase of plant assets, $55,400

b. Proceeds from issuance of common shares, $45,000

c. Payment of dividends, $44,400

d. Collection of interest, $8,500

e. Payments of salaries, $93,600

f. Proceeds from sale of plant assets, $27,000

g. Collections from customers, $630,000

h. Cash receipt of dividend revenue, $4,600

Requirement

Prepare L. Lee Associates’ cash flow statement for the year ended April 30, 2014. Use the direct method for cash flows from operating activities.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...