The following Cash T-account shows the total debits and total credits to the Cash account of Thomas Corporation for the current year. 1. Prepare a complete statement of cash flows for the current year using the direct method. 2. Refer to the statement of cash flows prepared for part 1 to answer the following questions. (a) Which section—operating, investing, or financing—shows the largest cash (i) inflow and (ii) outflow? (b) What is the largest individual item among the investing cash outflows? (c) Are the cash proceeds larger from issuing notes or issuing stock? (d) Does the company have a net cash inflow or outflow from borrowing activities? CashBalance, Dec. 31, prior yearReceipts from customersReceipts from dividendsReceipts from land saleReceipts from machinery saleReceipts from issuing stockReceipts from borrowing333,0005,000,000 Payments for inventory208,400 Payments for wages220,000 Payments for rent710,000 Payments for interest .1,540,000 Payments for taxes..3,600,000 Payments for machinery.2,590,000550,000320,000218,000450,0002,236,0001,260,000386,000........Payments for stock investmentsPayments for note payable.Payments for dividends.Payments for treasury stock.500,000218,000Balance, Dec. 31, current year.........

Cash Balance, Dec. 31, prior year Receipts from customers Receipts from dividends Receipts from land sale Receipts from machinery sale Receipts from issuing stock Receipts from borrowing 333,000 5,000,000 Payments for inventory 208,400 Payments for wages 220,000 Payments for rent 710,000 Payments for interest . 1,540,000 Payments for taxes.. 3,600,000 Payments for machinery. 2,590,000 550,000 320,000 218,000 450,000 2,236,000 1,260,000 386,000 ........ Payments for stock investments Payments for note payable. Payments for dividends. Payments for treasury stock. 500,000 218,000 Balance, Dec. 31, current year .........

Cash Balance, Dec. 31, prior year Receipts from customers Receipts from dividends Receipts from land sale Receipts from machinery sale Receipts from issuing stock Receipts from borrowing 333,000 5,000,000 Payments for inventory 208,400 Payments for wages 220,000 Payments for rent 710,000 Payments for interest . 1,540,000 Payments for taxes.. 3,600,000 Payments for machinery. 2,590,000 550,000 320,000 218,000 450,000 2,236,000 1,260,000 386,000 ........ Payments for stock investments Payments for note payable. Payments for dividends. Payments for treasury stock. 500,000 218,000 Balance, Dec. 31, current year .........

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.1.1MBA

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