Use the following calendar-year information to prepare Adam Company's statement of cash flows using the direct method.Cash paid to purchase machinery………………………$ 124,000Cash paid for merchandise inventory…………………220,000Cash paid for operating expenses………………………280,000Cash paid for interest……………………………………4,000Cash received for interest………………………………10,000Cash proceeds from sale of land………………………100,000Cash balance at beginning of year………………………15,000Cash balance at end of year……………………………77,000Cash borrowed on a short-term note……………………25,000Cash dividends paid……………………………………24,000Cash received from
stock issuance……………………57,000Cash collections from customers………………………522,000
What will be an ideal response?
Adam Company
Statement of Cash Flows (Direct Method)
For the year ended December 31
| Cash flows from operating activities: | ? | ? |
| Cash received from customers | $ 522,000 | ? |
| Cash received for interest | 10,000 | ? |
| Cash paid for merchandise inventory | (220,000) | ? |
| Cash paid for operating expenses | (280,000) | ? |
| Cash paid for interest | (4,000) | ? |
| Net cash provided by operating activities | ? | $ 28,000 |
| Cash flows from investing activities: | ? | ? |
| Cash received from sale of land | $ 100,000 | ? |
| Cash paid to acquire machinery | (124,000) | ? |
| Net cash used by investing activities | ? | (24,000) |
| Cash flows from financing activities: | ? | ? |
| Cash received on a short-term loan | $ 25,000 | ? |
| Cash received from stock issuance | 57,000 | ? |
| Cash dividends paid | (24,000) | ? |
| Net cash provided by financing activities | ? | 58,000 |
| Net increase in cash | ? | $ 62,000 |
| Cash balance at beginning of year | ? | 15,000 |
| Cash balance at end of year | ? | $ 77,000 |
| ? | ? |
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