Prepare the statement of cash flows for 2024 using the direct methodPlz do not provide image for answer The following are comparative balance sheets and an income statement for Wentworth Company.CashAccounts receivableInventoryLong-term investmentsTotal assetsLiabilities and shareholders' equityAccounts payableOperating expenses payableBonds payableCommon stockRetained earningsTotalsSalesCost of goods sold:Wentworth CompanyBalance Sheetsas of December 31Beginning inventoryPurchasesGoods available for saleLess: ending inventoryCost of goods soldGross profitWentworth CompanyIncome StatementFor the Year Ended December 31, 2024Operating expensesIncome from operationsOther expenses:Loss on sale of long-term investmentNet loss2024$ 19,500207,000192,000Cash dividends of $57,000 were paid in 2024.0$ 418,500$ 82,20025,20076,000137,00098,100$ 418,500$ 237,000342,000579,000192,0002023$ 132,000117,000237,00072,000$ 558,000$ 132,00016, 200112,000137,000160,800$ 558,000$ 582,000387,000195,000192,0003,000(8,700)$ (5,700)

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Prepare the statement of cash flows for 2024 using the direct method

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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Question

Prepare the statement of cash flows for 2024 using the direct method

Plz do not provide image for answer

The following are comparative balance sheets and an income statement for Wentworth Company.
Cash
Accounts receivable
Inventory
Long-term investments
Total assets
Liabilities and shareholders' equity
Accounts payable
Operating expenses payable
Bonds payable
Common stock
Retained earnings
Totals
Sales
Cost of goods sold:
Wentworth Company
Balance Sheets
as of December 31
Beginning inventory
Purchases
Goods available for sale
Less: ending inventory
Cost of goods sold
Gross profit
Wentworth Company
Income Statement
For the Year Ended December 31, 2024
Operating expenses
Income from operations
Other expenses:
Loss on sale of long-term investment
Net loss
2024
$ 19,500
207,000
192,000
Cash dividends of $57,000 were paid in 2024.
0
$ 418,500
$ 82,200
25,200
76,000
137,000
98,100
$ 418,500
$ 237,000
342,000
579,000
192,000
2023
$ 132,000
117,000
237,000
72,000
$ 558,000
$ 132,000
16, 200
112,000
137,000
160,800
$ 558,000
$ 582,000
387,000
195,000
192,000
3,000
(8,700)
$ (5,700)

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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