The following information is for RedwoodInc. for the year ended December 31, 2021. Redwood had a balance for cash and cash equivalents of $4,200 on January1, 2021. Cash Received from: Customers Interest on investments Sale of land Issuance of common stock Issuance of debt securities Cash Paid for: Interest on debt Income tax Debt principal reduction Purchase of equipment Purchase of inventory $ 2,100 Operating expenses 300 200 800 2,200 400 70 1,700 3,100 1,000 Dividends on common stock 300 600 Required: Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)
The following information is for RedwoodInc. for the year ended December 31, 2021. Redwood had a balance for cash and cash equivalents of $4,200 on January1, 2021. Cash Received from: Customers Interest on investments Sale of land Issuance of common stock Issuance of debt securities Cash Paid for: Interest on debt Income tax Debt principal reduction Purchase of equipment Purchase of inventory $ 2,100 Operating expenses 300 200 800 2,200 400 70 1,700 3,100 1,000 Dividends on common stock 300 600 Required: Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is for RedwoodInc. for the year ended December 31, 2021. Redwood had a balance for cash and cash
equivalents of $4,200 on January1, 2021.
Cash Received from:
Customers
Interest on investments
Sale of land
Issuance of common stock
Issuance of debt securities
Cash Paid for:
Interest on debt.
Income tax
Debt principal reduction
Purchase of equipment
Purchase of inventory
$ 2,100
Operating expenses
300
200
800
2,200
400
70
1,700
3.100
1,000
Dividends on common stock 300
600
Required:
Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be
indicated with a minus sign.)
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