Answer:
Explanation:
The preparation of the Cash Flows from three Activities - Direct Method is shown below:
Cash flow from Operating activities
Collections from customers $624,000
Less: Cash paid to suppliers and employees -$419,000
The total cash paid
= $215,000 + $204,000
= $419,000
Net Cash flow from Operating activities $205,000
Cash flow from Investing activities
Purchase of equipment -$145,000
Net Cash flow from Investing activities -$145,000
Cash flow from Financing activities
Cash dividends declared and paid -$49,000
Net Cash flow from Financing activities -$49,000
Net Cash flow from Operating activities $205,000
Net Cash flow from Investing activities -$145,000
Net Cash flow from Financing activities -$49,000
Net increase (decrease) in cash for the year is $11,000
Add: Beginning cash balance $52,000
Ending cash balance $63,000
