Question

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

Answer 1

Answer:

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

Explanation:

Show Cash flow resulting from:

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