preparing the statement of cash flows mdash direct method to prepare the statement o 644588
Preparing the statement of cash flows—direct method To prepare the statement of cash flows, accountants for E Mobile, Inc., have summarized 2012 activity in the Cash account as follows:
|
cash |
|||
|
Beginning balance |
87,200 |
Payments of operating expenses |
46,800 |
|
Issuance of common stock |
60,200 |
Payments of salaries and wages |
64,500 |
|
Receipts of interest revenue |
16,100 |
Payment of note payable |
79,000 |
|
Collections from customers |
308,400 |
Payment of income tax |
7,500 |
|
|
|
Payments on accounts payable |
101,600 |
|
|
|
Payments of dividends |
1,400 |
|
|
|
Payments of interest |
21,700 |
|
|
|
Purchase of equipment |
49,500 |
|
Ending balance |
99,900 |
|
|
Requirement
1. Prepare E Mobile’s statement of cash flows for the year ended December 31, 2012, using the direct method to report operating activities.