The 2014 accounting records of Rogan Transport reveal these transactions and eve

Question

The 2014 accounting records of Rogan Transport reveal these transactions and events.

1.) Prepare the cash flows from operating activities section using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Payment of interest $ 20,480 Payment of salaries and wages $ 108,544 Cash sales 98,304 Depreciation expense 32,768 Receipt of dividend revenue 36,864 Proceeds from sale of vehicles 1,662,976 Payment of income taxes 24,576 Purchase of equipment for cash 45,056 Net income 77,824 Loss on sale of vehicles 6,144 Payment for merchandise 198,656 Payment of dividends 28,672 Payment for land 151,552 Payment of operating expenses 57,344 Collection of accounts receivable 399,360

Explanation / Answer

Cash flows from operating activities Cash sales              98,304 Payment of operating expenses            (57,344) Cash receipts from customers            399,360 Cash paid to employees          (108,544) Sale of vehicle        1,662,976 Payment for merchandise          (198,656) Interest paid            (20,480) Income taxes paid            (24,576) Net cash from operating activities        1,751,040

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