The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: Collections from customers$480,000 Interest on notes receivable 11,000 Collection of notes receivable 53,000 Sale of investments 33,000 Issuance of notes payable 170,000 Cash Paid for: Purchase of inventory 230,000 Interest on notes payable 7,000 Purchase of equipment 87,000 Salaries to employees 92,000 Payment of notes payable 39,000 Dividends to shareholders 34,000 The balance of cash and cash equivalents at the beginning of 2021 was $25,000. Required:Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)

Answered: Prepare a statement of cash flows for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following summary transactions occurred during 2021 for Bluebonnet Bakers:


Cash Received from:
Collections from customers	$	480,000
Interest on notes receivable		11,000
Collection of notes receivable		53,000
Sale of investments		33,000
Issuance of notes payable		170,000
Cash Paid for:
Purchase of inventory		230,000
Interest on notes payable		7,000
Purchase of equipment		87,000
Salaries to employees		92,000
Payment of notes payable		39,000
Dividends to shareholders		34,000

The balance of cash and cash equivalents at the beginning of 2021 was $25,000.

Required:
Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)

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