Answer:
<u>statement of cash flows under direct method.</u>
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:
- Operating Activities (Direct Method)
- Investing Activities
- Financing Activities
