Statement of Cash Flows: Direct Method The following information is for Leer Company: Payments of interest, $5,000 Depreciation expense, $22,700 Receipt from sale of land, $3,100 Payments of income taxes, $6,200 Beginning cash balance, $16,500 Decrease in receivables, $7,400 Interest and dividends collected, $6,300 Payments of dividends, $5,200 Decrease in accounts payable, $8,600 Payments to suppliers and employees, $50,300 Receipt from issuance of common stock, $11,000 Collections from customers, $61,700 Payment for purchase of investments, $17,800 Net income, $73,400 Instructions: Using the direct method for operating cash flows, prepare Leer’s statement of cash flows. You must enter subtractive or negative numbers use a minus sig

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Statement of Cash Flows: Direct Method

The following information is for Leer Company:

  1. Payments of interest, $5,000
  2. Depreciation expense, $22,700
  3. Receipt from sale of land, $3,100
  4. Payments of income taxes, $6,200
  5. Beginning cash balance, $16,500
  6. Decrease in receivables, $7,400
  7. Interest and dividends collected, $6,300
  8. Payments of dividends, $5,200
  9. Decrease in accounts payable, $8,600
  10. Payments to suppliers and employees, $50,300
  11. Receipt from issuance of common stock, $11,000
  12. Collections from customers, $61,700
  13. Payment for purchase of investments, $17,800
  14. Net income, $73,400

Instructions:

Using the direct method for operating cash flows, prepare Leer’s statement of cash flows. You must enter subtractive or negative numbers use a minus sign.

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