Ridgewood Antiques had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1 was $361,000. Its 20X1 transactions affecting income or cash were (in thousands): 1. Sales of $1,600, all on credit. Cash collections from customers, $1,270. 2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable were affected accordingly. 3. Cash payments on trade accounts payable, $725. 4. Salaries and wages: accrued, $190; paid in cash, $180. 5. Depreciation, $48. 6. Interest expense, all paid in cash, $11. 7. Other expenses, all paid in cash, $100. 8. Income taxes accrued, $40; income taxes paid in cash, $35. 9. Bought plant and facilities for $235 cash. 10. Issued debt for $110 cash. 11. Paid cash dividends of $39. Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.
Ridgewood Antiques had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1 was $361,000. Its 20X1 transactions affecting income or cash were (in thousands): 1. Sales of $1,600, all on credit. Cash collections from customers, $1,270. 2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable were affected accordingly. 3. Cash payments on trade accounts payable, $725. 4. Salaries and wages: accrued, $190; paid in cash, $180. 5. Depreciation, $48. 6. Interest expense, all paid in cash, $11. 7. Other expenses, all paid in cash, $100. 8. Income taxes accrued, $40; income taxes paid in cash, $35. 9. Bought plant and facilities for $235 cash. 10. Issued debt for $110 cash. 11. Paid cash dividends of $39. Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:16-A2 Statement of Cash Flows, Direct Method
Ridgewood Antiques had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1
was $361,000. Its 20X1 transactions affecting income or cash were (in thousands):
1. Sales of $1,600, all on credit. Cash collections from customers, $1,270.
2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable
were affected accordingly.
3. Cash payments on trade accounts payable, $725.
4. Salaries and wages: accrued, $190; paid in cash, $180.
5. Depreciation, $48.
6. Interest expense, all paid in cash, $11.
7. Other expenses, all paid in cash, $100.
8. Income taxes accrued, $40; income taxes paid in cash, $35.
9. Bought plant and facilities for $235 cash.
10. Issued debt for $110 cash.
11. Paid cash dividends of $39.
Prepare a statement of cash flows using the direct method for reporting cash flows from operating
activities. Omit supporting schedules.
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