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Harrison Harrison
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Posts: 626
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6 years ago
The following selected data for Flower Bed Inc. for 2013 were gathered by its accountants, who are responsible for preparing the financial statements:

Cost of goods sold   $56,500
depreciation expense   14,000
Other operating expenses   17,700
Loss on sale of investments   1,500
Gain on sale of capital assets   8,500
Sales revenue   95,600
Interest revenue received   5,200
Dividend revenue received   2,500
Salary expense   27,200
Interest expense paid   5,900
Income tax expense   2,400

The cash account on January 1, 2013, had a balance of $15,000 and a balance of $208,500 on December 31, 2013.

Other data gathered by the accountants for 2013:

Accounts receivable decreased   $13,600
Inventory increased   6,800
Prepaid expenses decreased   2,700
Accounts payable increased   21,400
Salary payable increased   1,500
Accrued liabilities decreased   4,300
Income tax payable increased   800
Acquisition of capital assets   46,000
Issuance of common shares   80,000
Proceeds from sale of investments   35,000
Collection of loan principal   22,600
Payment of dividends   15,000
Proceeds from sale of capital assets   31,700
Proceeds from sale of repurchase of shares   45,000

Prepare the cash flow statement for the year ended December 31, 2013, using the direct method under ASPE.
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
Authors:
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wrote...
6 years ago
Flower Bed Inc.
   Cash Flow Statement
   For the Year Ended December 31, 2013

Cash flows from operating activities:
Receipts:
Collections from customers   $109,200
Interest received   5,200
Dividends received   2,500
Total cash receipts      $116,900

Payments:
To suppliers   $43,500 *
To employees   25,700
For interest   5,900
For income taxes   1,600
Total cash payments      76,700
Net cash inflow from operating activities      $40,200

Cash flows from investing activities:
Acquisition of capital assets   $(46,000)
Proceeds from sale of investments   35,000
Collections on loans   22,600
Proceeds from sale of capital assets   31,700
Net cash inflow from investing activities      43,300

Cash flows from financing activities:
Issuance of common shares   $80,000
Payment of dividends   (15,000)
Proceeds from sale of repurchase
of shares   45,000
Net cash inflow from financing activities      110,000
Net increase in cash      $193,500
Cash balance: January 1, 2013      15,000
Cash balance: December 31, 2013      $208,500
*   $56,500 + $6,800 - $2,700 - $21,400 + $4,300 = $43,500
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