Statement of cash flows Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3. Instructions Prepare a statement of cash flows for January.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 3, Problem 3.4.1P

Statement of cash flows
Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3.
Instructions

Prepare a statement of cash flows for January.

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Explain and give example of the following Management Reports Procedures Activities: Six Week Cash Flow Report

Cash Short and Over Entries Listed below are the weekly cash register tape amounts for service fees and the related cash counts during the month of July. A change fund of $100 is maintained. Cash Register Actual Cash Date Change Fund Receipt Amount Counted July 2 $100 $291.40 $388.00 100 311.30 411.30 16 100 302.50 405.90 23 100 318.20 416.00 30 100 297.50 401.10 Required: 1. Prepare the journal entries to record the cash service fees and cash short and over for each of the five weeks. Enter the posting reference when you post to the ledger in part 2. GENERAL JOURNAL DATE DESCRIPTION POST. REF. DEBIT 20-- Jul. 2 Record service fees and cash shortage Jul. 9 Record service fees Jul. 16 Record service fees and cash overage Jul. 23 Record service fees and cash shortage Jul. 30

From the above information, can you produce the budgeted statement of financial position and a brief analysis report?

Answer 2

Textbook Question

Chapter 3, Problem 3.4.1P

Statement of cash flows
Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3.
Instructions

Prepare a statement of cash flows for January.

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 3, Problem 3.4.1P

Statement of cash flows
Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3.
Instructions

Prepare a statement of cash flows for January.

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 3, Problem 3.4.1P

Statement of cash flows
Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3.
Instructions

Prepare a statement of cash flows for January.

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Prepare:

The Cash Flow Statement

Answer 12

Answer to Problem 3.4.1P

The Cash Flow Statement is as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers	$ 246,000
Payments to Suppliers	$(116,000)
Payments to Employees	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Answer 13

Explanation of Solution

The Cash Flow Statement is prepared as follows:

Statement of Cash Flows-Direct Method

Cash flow from Operating activities:

Collection from Customers (233000+13000)	$ 246,000
Payments to Suppliers (104000+12000)	$(116,000)
Payments to Employees (48000+3000)	$ (51,000)
Payment of Income tax	$ (7,500)
Interest Expense	$ (2,500)
Dividend Revenue	$ 7,000
Net Cash Provided by Operating activities		$ 76,000

Cash flow from Investing activities:
Cash Payment for Acquisition of Plant Assets	$(102,000)
Cash Receipts from Sale of Land	$ 29,000
Net Cash Used by Investing activities		$(73,000)

Cash flow from Financing activities:
Cash Receipts from Issuance of Common Stock	$ 38,000
Payment of Long Term notes payable	$ (10,000)
Payment of Dividends	$ (9,000)
Net Cash Provided by Financing activities		$ 19,000

Net Cash Flows		$ 22,000
Add: Beginning Cash Balance		$ 21,000
Ending Cash Balance		$ 43,000

Answer 14

Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQ Ch. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ

Statement of cash flows Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and 3-3. Instructions Prepare a statement of cash flows for January.

Concept explainers

Videos

Answer to Problem 3.4.1P

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions

Additional Business Textbook Solutions