Prepare a statement of cash flow using the direct method


Question - Wong furniture company had a cash balance on December 31, 20x0, of 50,000 It´s net income for 20x1 was 361,000. It´s 20x1 transaction affecting income or cash

1. Sales of 1.600 all on credit. Cash collection from customer 1,350

2. The cost of items sold, $850. Purchases of inventory totaled $ 900; inventory and accounts payable were affected accordingly

3. Cash payments on trade accounts payable $ 775

4. Depreciation $ 48

6. Interest expenses, all paid in cash $ 11

7. Other expenses, all paid in cash $100

8. Income taxes accrued $40, income taxes paid $30

9. Bought plant and facilities for 335 cash

10.  Issued debt for 110 cash

11.  Paid cash dividends of $39

Prepare a statement of cash flow using the direct method for reporting cash flows from operating activities.

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Accounting Basics: Prepare a statement of cash flow using the direct method
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