The following summary transactions occurred during 2011 for Bluebonnet Bakers: C
ID: 2364205 • Letter: T
Question
The following summary transactions occurred during 2011 for Bluebonnet Bakers:Cash Received from:
Customers $380,000
Interest on note receivable 6,000
Principal on note receivable 50,000
Sale of investments 30,000
Proceeds from note payable 100,000
Cash Paid for:
Purchase of inventory 160,000
Interest on note payable 5,000
Purchase of equipment 85,000
Salaries to employees 90,000
Principal on note payable 25,000
Payment of dividends to shareholders 20,000
The balance of cash and cash equivalents at the beginning of 2011 was $17,000.
Required:
Prepare a statement of cash flows for 2011 for Bluebonnet Bakers. Use the direct method for reporting operating activities
Explanation / Answer
Opering activities - for cash flow
Collection from customers
380000
receivable
6000
purchase
160000
interest
5000
Salaries payment
90000
Net cash flow from investing
131,000
collection
50000
Sale
30000
purchase
85000
Net flow from financing activties
5000
Payment fromNote payable
100000
Note payable
25000
dividend
20000
Net cash
55000
Net cash
181000
Net cash jan 1st
17000
Cash –dec 31
$198000
Opering activities - for cash flow
Collection from customers
380000
receivable
6000
purchase
160000
interest
5000
Salaries payment
90000
Net cash flow from investing
131,000
collection
50000
Sale
30000
purchase
85000
Net flow from financing activties
5000
Payment fromNote payable
100000
Note payable
25000
dividend
20000
Net cash
55000
Net cash
181000
Net cash jan 1st
17000
Cash –dec 31
$198000
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