| Cash flow Direct Method |
| Direct: Preparing statement of cash flows and supporting note |
| | Cash and cash equivalents, Dec. 31 prior year-end | 27,000 |
| | Cash and cash equivalents, Dec. 31 current year-end | 75,924 |
| | Cash received as interest | 2,700 |
| | Cash paid for salaries | 78,300 |
| | Bonds payable retired by issuing common stock (no gain or loss on retirement) | 200,000 |
| | Cash paid to retire long-term notes payable | 135,000 |
| | Cash received from sale of equipment | 66,150 |
| | Cash received in exchange for six-month note payable | 27,000 |
| | Land purchased by issuing long-term note payable | 116,000 |
| | Cash paid for store equipment | 25,650 |
| | Cash dividends paid | 16,200 |
| | Cash paid for other expenses | 43,200 |
| | Cash received from customers | 523,800 |
| | Cash paid for inventory | 272,376 |
| | Midland Company |
| | Statement of Cash Flows |
| | For Year Ended December 31 |
| | Cash flows from operating activities |
| | Receipts from customers |
| | Receipts of interest |
| | Payments for inventory |
| | Payments for salaries |
| | Payments for other expenses |
| | Net cash provided by operating activities |
| | Cash flows from investing activities |
| | Receipt from sale of equipment |
| | Payment for store equipment |
| | Net cash provided by investing activities |
| | Cash flows from financing activities |
| | Payment to retire long-term notes payable |
| | Receipt from borrowing on six-month note |
| | Payment of cash dividends |
| | Net cash used in financing activities |
| | Net increase (decrease) in cash and cash equivalents |
| | Cash and cash equivalents at beginning of year |
| | Cash and cash equivalents at end of year |
| | Noncash investing and financing activities |
| | Bonds payable retired by issuing common stock |
| | Land purchased by issuing long-term note payable |
brandon282011
AC216Unit6Assignment3-CashFlowDirect.xlsx
