Prepare a statement of cash flows, using the direct method of presenting cash fl
ID: 2401071 • Letter: P
Question
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities Be sure to compiete the heading of the statement. Be sure to compiete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. YOU MUST ND FORMAT PROVIDED BELOW. Enter amounts that represent cash outflows as negative numbers using a minus sign The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: Question not attempted Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Investments 7 Land 8 Equipment 9 Accumulated depreciation-equipment $625,080.00 $586,430.00 228,260.00 209,470.00 641,070.00 616,400.00 0.00 327,640.00 0,00 705,000.00 552,830.00 (165,670.00) (148,610.00) 240,170.00Explanation / Answer
Working:
Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 1 Cash flows from operating activities: 2 Cash received from customers 5350678.00 3 Cash payments for merchandise -3311270.00 4 Cash payments for operating expenses -1765170.00 5 Cash payments for income taxes -132198.00 6 Net cash flow from operating activities 142040.00 7 8 Cash flows from investing activities: 9 Cash received from sale of investments 280150.00 10 Cash paid for purchase of land -327640.00 11 Cash paid for purchase of equipment -152170.00 12 Net cash flow used for investing activities -199660.00 13 14 Cash flows from financing activities: 15 Cash received from sale of common stock 187500.00 16 Cash paid for dividends -91230.00 17 Net cash flow from financing activities 96270.00 18 Change in cash 38650.00 19 Cash at the beginning of the year 586430.00 20 Cash at the end of the year 625080.00