To prepare the statement of cash flows, accountants for Daisy Electric Company h

Question

To prepare the statement of cash flows, accountants for Daisy Electric Company have summarized 2014 activity in two accounts: Daisy Electric's 2014 income statement and balance sheet follow: Requirement 1. Prepare the statement of cash flows of Daisy Electric Company for the year ended December 31, 2014, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities using the direct method. Then complete the statement of cash flows and the accompanying schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)

Explanation / Answer

Cash Flow Statement Cash flows from operating activities Receipts Collections From Customers           661,100.00 Total Cash Receipts           661,100.00 Payments Payments Of Accounts Payable         (399,500.00) Payment of Salaries & Wages         (143,600.00) Payment of Interest           (27,000.00) Payment of Opearating Expenses           (34,600.00) Payment of Income Tax           (18,400.00) Total Cash Payments         (623,100.00) Net cash from operating activities             38,000.00 Cash flows from investing activities Purchase of equipment -31300 Sale of Long Term Investments 21300 Receipts Of Dividend             17,000.00 Net cash used in investing activities               7,000.00 Cash flows from financing activities Issuance Of Common Stock 22200 Payments of dividend -50700 Payment of Long term Note Payable -41000 Purchase of Treasuary Stock -16100 Net cash used in financing activities           (85,600.00) Net increase in cash and cash equivalents         (40,600.00) Cash and cash equivalents at beginning of period           44,300.00 Cash and cash equivalents at end of period             3,700.00 Indirect Method Cash flows from operating activities Net Income             95,700.00 Adjustnebt to reconcile Net income to cash flow Payments Depreciation expense             16,900.00 Loss on sale of Investment                  900.00 Dividend Revenue           (17,000.00) Increase in Accounts Receivable           (27,400.00) Increase in Inventory           (11,600.00) Decrease in Prepaid Expenses                  500.00 Decrease in Accounts Payable             (1,200.00) Decrease in Salaries & Wages             (7,500.00) Decrease in Accurued Liabilities           (10,600.00) Increase in Interest Tax payable               2,500.00 Decrease in Income Tax payable             (3,200.00) Net cash from operating activities             38,000.00 Cash flows from investing activities Purchase of equipment -31300 Sale of Long Term Investments 21300 Receipts Of Dividend             17,000.00 Net cash used in investing activities               7,000.00 Cash flows from financing activities Issuance Of Common Stock 22200 Payments of dividend -50700 Payment of Long term Note Payable -41000 Purchase of Treasuary Stock -16100 Net cash used in financing activities           (85,600.00) Net increase in cash and cash equivalents         (40,600.00) Cash and cash equivalents at beginning of period           44,300.00 Cash and cash equivalents at end of period             3,700.00

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