A company gathered the following information from its accounting records: Loaned $2,000 to another company Sold...

A company gathered the following information from its accounting records:

Loaned $2,000 to another company
Sold company stock for cash of $10,000
Purchased equipment for cash of $20,000
Cash sales to customers were $95,000
Sold equipment for cash of $4,000
Paid cash to employees for wages, $9,500
Paid cash for merchandise, $29,000
Pay a $2,000 cash dividend
Bar of $6,000 from bank
Purchased other company’s stock, $5,000
Received a cash dividend from other company of $200 Paid cash for other expenses, $8,000

May the loan payment to bank of $2200, which included $200 interest Cash balance on January 1 was $15,000

Required: Prepare a statement of cash flows for the company for the year ended December 31 using the direct method for the operations section.
**Hint – In real life, you would also have an ending balance for cash, so here’s your hint: the ending balance should be $52,500. If you don’t wind up with that at the bottom of the schedule, you’ve done something wrong.

Expert Solution

ekkarill92 answered 2 years ago

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