The following summary transactions occurred during 2018 for Bluebonnet Bakers: T

Question

The following summary transactions occurred during 2018 for Bluebonnet Bakers:
    

   
The balance of cash and cash equivalents at the beginning of 2018 was $17,000.
   
Required:
Prepare the statement of cash flows assuming that Bluebonnet prepares its financial statements according to International Financial Reporting Standards. Where IFRS allows flexibility, use the classification used most often in IFRS financial statements. (Amounts to be deducted should be indicated with a minus sign.)
  

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

Explanation / Answer

Bluebonnet bakers Statement of cash flows for the year ended dec31,2018 Amount in $ cash flow From Operating Activities cash received from Customers 380000 Interest on Notes receivables 6000 Purchase of inventory -160000 Cash paid to Salaries to employess -90000 Cash paid for Interest on Note payable -5000 Net cash provided by Operating Activities 131000 Cash flow from Investing Activities cash paid for purchase of Equipment -85000 Sale of investments 30000 cash received from note receivables 50000 Net Cash Flows from Investing activities -5000 Cash flow from Financing activities Cash paid for Dividends -20000 cash paid for principal on Note payable -25000 Cash received from note payable 100000 Net cash flows from Financing activties 55000 Net Increse /(decrese ) In cash 181000 Beginning cash balance 17000 Ending cash balance 198000

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