Question

The accounting staff of Wyoming Outfitters, Inc.,has assembled the following information for the year ended December31, 2015:

Cashand cash equivalents, Jan. 1 $ 35,800
Cashand cash equivalents, Dec. 31 150,000
Cashpaid to acquire plant assets 23,000
Proceeds from short-term borrowing 10,000
Loans made to borrowers 5,200
Collections on loans (excluding interest) 4,000
Interest and dividends received 32,400
Cashreceived from customers 835,000
Proceeds from sales of plant assets 9,000
Dividends paid 53,000
Cashpaid to suppliers and employees 606,000
Interest paid 19,000
Income taxes paid 70,000
Using this information, prepare a statement of cash flows underdirect method. (List any deduction in cash and cashoutflows as negative amounts.)

Answer 1

statement of cash flows under direct method.

Cash flow from Operating Activities

Cash received from customers 835,000

Cash paid to suppliers and employees (606,000)

Cash Generated From Operations 229,000

Interest paid (19,000)

Income taxes paid (70,000)

Net Cash from Operating Activities 140,000

Cash flow from Investing Activities

Cash paid to acquire plant assets (23,000)

Loans made to borrowers (5,200)

Interest and dividends received 32,400

Proceeds from sales of plant assets 9,000

Net Cash from Investing Activities 13,200

Cash flows from Financing Activities

Proceeds from short-term borrowing 10,000

Collections on loans (excluding interest) 4,000

Dividends paid (53,000)

Net Cash used in Financing Activities (39,000)

Net Cash Flow Movement During the Year 114,200

Add Cash and cash equivalents, Jan. 1 35,800

Cash and cash equivalents, Dec. 31 150,000

Step-by-step explanation:

Show Cash flow resulting from:

1. Operating Activities (Direct Method)
2. Investing Activities
3. Financing Activities