The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Wright Company. Additional information from Wright's accounting records is provided also.WRIGHT COMPANYComparative Balance SheetsDecember 31, 2024 and 2023($ in thousands) 20242023Assets Cash$ 127$ 115Accounts receivable157160Short-term investment5922Inventory159155Land118145Buildings and equipment755570Less: Accumulated depreciation(217)(160) $ 1,1581,007Liabilities Accounts payable$ 48$ 52Salaries payable48Interest payable86Income tax payable914Notes payable037Bonds payable344270Shareholders’ Equity Common stock430370Paid-in capital—excess of par215185Retained earnings10065 $ 1,158$ 1,007WRIGHT COMPANYIncome StatementFor Year Ended December 31, 2024($ in thousands)Revenues: Sales revenue $ 660Expenses: Cost of goods sold$ 300 Salaries expense92 Depreciation expense57 Interest expense20 Loss on sale of land3 Income tax expense98570Net income $ 90Additional information from the accounting records:Land that originally cost $27,000 was sold for $24,000.The common stock of Microsoft Corporation was purchased for $37,000 as a short-term investment not classified as a cash equivalent.New equipment was purchased for $185,000 cash.A $37,000 note was paid at maturity on January 1.On January 1, 2024, bonds were sold at their $74,000 face value.Common stock ($60,000 par) was sold for $90,000.Net income was $90,000 and cash dividends of $55,000 were paid to shareholders.Required:Prepare the statement of cash flows of Wright Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Statement of Cash FlowsFor the year ended December 31, 2024($ in thousands)Cash flows from operating activities:Cash inflows:Cash outflows:Net cash flows from operating activities.Cash flows from investing activities:Net cash flows from investing activitiesCash flows from financing activities:Net cash flows from financing activitiesNet increase (decrease) in cashCash balance, January 1Cash balance, December 31$$0

Step 1:Computation of cash inflows from customers: ($ in thousands)*balancing figure Note: Assume…

Answered: Statement of Cash Flows For the year…

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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WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
	2024	2023
Assets
Cash	$ 127	$ 115
Accounts receivable	157	160
Short-term investment	59	22
Inventory	159	155
Land	118	145
Buildings and equipment	755	570
Less: Accumulated depreciation	(217)	(160)
	$ 1,158	1,007
Liabilities
Accounts payable	$ 48	$ 52
Salaries payable	4	8
Interest payable	8	6
Income tax payable	9	14
Notes payable	0	37
Bonds payable	344	270
Shareholders’ Equity
Common stock	430	370
Paid-in capital—excess of par	215	185
Retained earnings	100	65
	$ 1,158	$ 1,007

WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2024
($ in thousands)
Revenues:
Sales revenue		$ 660
Expenses:
Cost of goods sold	$ 300
Salaries expense	92
Depreciation expense	57
Interest expense	20
Loss on sale of land	3
Income tax expense	98	570
Net income		$ 90

Additional information from the accounting records:

Land that originally cost $27,000 was sold for $24,000.
The common stock of Microsoft Corporation was purchased for $37,000 as a short-term investment not classified as a cash equivalent.
New equipment was purchased for $185,000 cash.
A $37,000 note was paid at maturity on January 1.
On January 1, 2024, bonds were sold at their $74,000 face value.
Common stock ($60,000 par) was sold for $90,000.
Net income was $90,000 and cash dividends of $55,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).