13SE
Question
Preparing the direct method statement of cash flows Use the data in Short Exercise S14A-12 and your results. Prepare the business’s complete statement of cash flows for the year ended June 30, 2018, using the direct method for operating activities
Step-by-Step Solution
VerifiedNet increase in cash is $6,500 and cash balance as on 30 June, 2018 is $47,500.
Cash flows from operating activities |
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Receipts: |
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Collection from customers | $188,000 |
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Payments: |
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To suppliers | ($115,000) |
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To employees | ($66,000) |
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Net cash provided by operating activities |
| $7,000 |
Amy’s Learning Centre Statement of cash flows Year ended 30 June, 2018 | ||
Cash flows from operating activities |
| $7,000 |
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Cash flows from investing activities |
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Cash purchase of equipment | ($39,000) |
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Cash receipt from sale of land | $58,000 |
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Net cash used for investing activities |
| $19,000 |
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Cash flows from financing activities |
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Cash payment of dividends | ($7,500) |
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Cash payment of notes payable | ($34,000) |
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Cash receipt from issuance of stock | $22,000 |
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Net cash provided by financing activities |
| ($19,500) |
Net Increase/(Decrease) in cash |
| $6,500 |
Cash balance, 30 June, 2017 |
| $41,000 |
Cash balance, 30 June, 2018 |
| $47,500 |