The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2519762 • Letter: T
Question
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
The common stock of Microsoft Corporation was purchased for $29,000 as a short-term investment not classified as a cash equivalent.
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
Explanation / Answer
Direct method Statement of cash flow Cash flows from operating activities Cash inflows From customers $520+(120-116) 524 Cash outflow Payment to suppliers 220+(118-115)+(44-35 -232 Payment of salaries expenses 73+(6-3) -76 Payment of Interest expenses 18-(8-6) -16 Payment of income tax expense 66+(12-9) -69 131 Net cash from operating activities 131.00 Cash flows from investing activities Purchase of short term investment -29 Sale of land 15 Purchase f Equipment -140 -154 Net cash used investing activities (154.00) Cash flows from financing activities Sale of Bonda payable 56 Payment of note -28 Sale of common stock 68 Payment of Dividend -45 51.00 Net cash from financing activities 51.00 Net Increase in cash and cash equivalents 28.00 Cash and cash equivalents at beginning of period 75.00 Ending Balance 103.00 If any doubt please comment