XYZ Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows during 2021: January 1 cash balance     1,000,000 Cash receipts from issuance of ordinary shares  1,208,000 Cash receipts from customers 1,640,000 Proceeds from sale of treasury shares (cost – P720,000) 800,000 Cash receipts from dividends on long-term investments 80,000 Cash receipts from repayment of loan made to another company 640,000 Cash payments to suppliers 1,080,000 Cash paid to redeem own shares 1,200,000 Cash paid for interest on long-term notes 120,000 Cash payments for operating expenses 320,000 Cash payments for dividends 200,000 Cash payment for income taxes 144,000 Cash paid to purchase land 1,040,000 Required: Prepare statement of cash flows at December 31, 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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XYZ Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows during 2021:

January 1 cash balance     1,000,000

Cash receipts from issuance of ordinary shares  1,208,000

Cash receipts from customers 1,640,000

Proceeds from sale of treasury shares (cost – P720,000) 800,000

Cash receipts from dividends on long-term investments 80,000

Cash receipts from repayment of loan made to another company 640,000

Cash payments to suppliers 1,080,000

Cash paid to redeem own shares 1,200,000

Cash paid for interest on long-term notes 120,000

Cash payments for operating expenses 320,000

Cash payments for dividends 200,000

Cash payment for income taxes 144,000

Cash paid to purchase land 1,040,000

Required: Prepare statement of cash flows at December 31, 2021.

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