$20.00
Exercise 21-14:
Identifying cash flows from investing activities and financing activities
In preparation for developing its statement of cash flows for the year ended December 31, 2013, Millennium Solutions, Inc., collected the following information ($ in millions):
Required:
Exercise 21-21
Cash flows from operating activities (direct method) derived from an income statement and cash flows from operating activities indirect methods
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers
Required:
1. Calculate each of the following amounts for Peach Computers.
a. Cash received from customers during the reporting period.
b. Cash paid to suppliers of goods during the reporting period.
c. Cash paid to employees during the reporting period.
d. Cash paid for insurance during the reporting period.
e. Cash paid for income taxes during the reporting period.
2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method).
Problem 21-4
Statement of cash flows; direct method
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
Addiional information from the accounting records:
Required:
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)