Accounting Test

The following information is for Henenlotter Inc. for the year ended December 31, 2012.

Henenlotter had a cash and cash equivalents balance of $7100 on January 1, 2012.

CASH RECEIVED FROM:

Customers

?

Interest on investments

600

Sale of land (not in use)

1,000

Sale of Henenlotter Inc. common stock

750

Sale of Janis Corp. stock

500

Issuance of debt securities (bonds)

2,000

CASH PAID FOR:

Interest on debt

300

Income tax

80

Debt principal reduction

1,500

Purchase of equipment

4,100

Purchase of inventory

1,000

Dividends paid on Henenlotter common stock

200

Operating expenses

400

OTHER DATA

Revenue

600

Accounts Receivable (Jan. 1, 2012)

1,200

Accounts Receivable (Dec. 31, 2012)

900

Accounts written off during the year

200

Prepare a Statement of Cash Flows for the year.

Use the direct method for the operating activities section.