The following summary transactions occurred during 2021 for Bluebonnet Bakers:       Cash Received from:       Collections from customers $ 390,000   Interest on notes receivable   8,500   Collection of notes receivable   44,000   Sale of investments   24,000   Issuance of notes payable   125,000   Cash Paid for:       Purchase of inventory   185,000   Interest on notes payable   7,500   Purchase of equipment   70,000   Salaries to employees   75,000   Payment of notes payable   30,000   Dividends to shareholders   25,000       The balance of cash and cash equivalents at the beginning of 2021 was $16,000.   Required: Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following summary transactions occurred during 2021 for Bluebonnet Bakers:
 

   
Cash Received from:      
Collections from customers $ 390,000  
Interest on notes receivable   8,500  
Collection of notes receivable   44,000  
Sale of investments   24,000  
Issuance of notes payable   125,000  
Cash Paid for:      
Purchase of inventory   185,000  
Interest on notes payable   7,500  
Purchase of equipment   70,000  
Salaries to employees   75,000  
Payment of notes payable   30,000  
Dividends to shareholders   25,000  
 

 
The balance of cash and cash equivalents at the beginning of 2021 was $16,000.
 
Required:
Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities.

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