I\'ve put the info in can someone pleae help me now? NEED HELP! DIRECT METHOD -
ID: 2481491 • Letter: I
Question
I've put the info in can someone pleae help me now?
NEED HELP! DIRECT METHOD - NOT INDIRECT!!!
Problem 14-5A - Charles Inc statement of cash flows showing DIRECT method.
Additional data obtained from an examination of the accounts in the ledger for 2014 are as follows:
The investments were sold for $210,000 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $72,000 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.
Cash flows from operating activities:
1.
2.
3.
4.
Net cash flow from operating activites: $
Cash flows from investing activities:
1.
2.
3.
Net cash flow used for investing activities
Cash flows from financing activities:
1.
2.
Net cash flow from financing activitiers: $
Cash at beginning of year: $
Cash at end of the year: $
HidePrepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.
Cash flows from operating activities:
1.
2.
3.
4.
Net cash flow from operating activites: $
Cash flows from investing activities:
1.
2.
3.
Net cash flow used for investing activities
Cash flows from financing activities:
1.
2.
Net cash flow from financing activitiers: $
Cash at beginning of year: $
Cash at end of the year: $
Explanation / Answer
Collection from customers Sales $ 52,61,701.00 Less: Increase in accouts receivable $ 14,160.00 Cash collected from customers $ 52,47,541.00 Cash payment to suppliers COGS $ 32,37,970.00 Add: ending inventory $ 4,81,320.00 $ 37,19,290.00 less: beginning inventory $ 4,62,840.00 Purchase $ 32,56,450.00 Less: increase in accounts payable $ 14,640.00 Payment to creditors $ 32,41,810.00 Payment for other operating expenses Operating expense $ 17,22,798.00 Add: decrease in accured expenses $ 7,800.00 Payment for other operating expenses $ 17,30,598.00 Cash flow from operating activities Cash collected from customers $ 52,47,541.00 Less: Cash payment to suppliers $ 32,41,810.00 payment for other operating expenses $ 17,30,598.00 payment for income tax $ 1,26,853.00 $ 50,99,261.00 Net cash provided by operating activities $ 1,48,280.00 Investing activites Sale of investment $ 2,10,000.00 Purchase of land $ -2,46,000.00 purchase of equipment (528840-414840) $ -1,14,000.00 Net cash used in investing activites $ -1,50,000.00 Financing activites Issue of common stock (95000-75000+290000-210000) $ 1,00,000.00 Payment of dividend(14400+72000-18000) $ -68,400.00 Net cash provided by financing activities $ 31,600.00 Net Increase in cash $ 29,880.00 Add: balance as on 31st dec 2013 $ 4,39,440.00 Balance as on 31st dec 2014 $ 4,69,320.00
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