The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales. Credit sales Collections on accounts receivable Cash transferred from the money market fund to the general bank account Interest and dividends received Purchases (all on account) Payments on accounts payable to merchandise suppliers Cash payments for operating expenses (including payroll) Interest paid Income taxes paid Loans made to borrowers Collections on loans (excluding receipts of interest) Cash paid to acquire plant assets. Book value of plant assets sold Loss on sales of plant assets Proceeds from issuing bonds payable Dividends paid Cash and cash equivalents, Jan. 1 $ 873,000 2,500,000 2,205,000 250,000 100,000 1,800,000 1,470,000 1,055,000 180,000 95,000 500,000 260,000 3,100,000 662,900 82,800 2,500,000 120,000 512,000 Required: a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities. b-1. Compute the amount of collections from customers. b-2. Compute the amount of cash paid to suppliers and employees. b-3. Compute the amount of proceeds from sales of plant assets.

The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales. Credit sales Collections on accounts receivable Cash transferred from the money market fund to the general bank account Interest and dividends received Purchases (all on account) Payments on accounts payable to merchandise suppliers Cash payments for operating expenses (including payroll) Interest paid Income taxes paid Loans made to borrowers Collections on loans (excluding receipts of interest) Cash paid to acquire plant assets. Book value of plant assets sold Loss on sales of plant assets Proceeds from issuing bonds payable Dividends paid Cash and cash equivalents, Jan. 1 $ 873,000 2,500,000 2,205,000 250,000 100,000 1,800,000 1,470,000 1,055,000 180,000 95,000 500,000 260,000 3,100,000 662,900 82,800 2,500,000 120,000 512,000 Required: a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities. b-1. Compute the amount of collections from customers. b-2. Compute the amount of cash paid to suppliers and employees. b-3. Compute the amount of proceeds from sales of plant assets.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 5AP

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