The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar-year 2016.
1. Use this information to prepare a complete statement of cash flows for year 2016. The cash provided or used by operating activities should be reported using the direct method.
2. Refer to the statement of cash flows prepared for part 1 to answer the following questions a through d:
(a) Which section-operating, investing, or financing-shows the largest cash
(i) Inflow and
(ii) Outflow?
(b) What is the largest individual item among the investing cash outflows?
(c) Are the cash proceeds larger from issuing notes or issuing stock?
(d) Does the company have a net cash inflow or outflow from borrowing activities?

Transcribed Image Text:

Aocounting System: Elo Edt Mairtain Tass Anais Options BEeports Wndow Hap Cash Balance, Dec. 31, 2015 333,000 5,000,000 Payments for inventory .2,590,000 550,000 Receipts from dividends208,400 Payments for wages 710,000 Payments for interest.. Receipts from machinery sale Receipts from issuing stock Receipts from borrowing 218,000 4til),000 2,236,000 1,260,000 3,600,000 Payments for long-term investments Payments for dividends 500,000 Balance, Dec. 31, 2016