The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales $ 726,000 Credit sales 2,500,000 Collections on accounts receivable 2,205,000 Cash transferred from the money market fund to the general bank account 250,000 Interest and dividends received 100,000 Purchases (all on account) 1,800,000 Payments on accounts payable to merchandise suppliers 1,530,000 Cash payments for operating expenses (including payroll) 1,065,000 Interest paid 180,000 Income taxes paid 95,000 Loans made to borrowers 500,000 Collections on loans (excluding receipts of interest) 260,000 Cash paid to acquire plant assets 3,100,000 Book value of plant assets sold 651,300 Loss on sales of plant assets 75,200 Proceeds from issuing bonds payable 2,500,000 Dividends paid 120,000 Cash and cash equivalents, Jan. 1 512,000 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 $ 726,000 Credit sales 2,500,000 Collections on
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