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The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: Collections from customers $ 470,000 Interest on notes receivable 10,500 Collection of notes receivable 52,000 Sale of investments 32,000 Issuance of notes payable 165,000 Cash Paid for: Purchase of inventory 225,000 Interest on notes payable 6,500 Purchase of equipment 86,000 Salaries to employees 91,000 Payment of notes payable 38,000 Dividends to shareholders 33,000 The balance of cash and cash equivalents at the beginning of 2021 was $24,000. Required: Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)

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  1. Today, 10:11
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    Total cash flow generated for the year: 250,000

    Beginning cash flow 24,000

    Ending Cash flow 274,000

    Explanation:

    Operating

    Collections from customers $ 470,000

    Purchase of inventory (225,000)

    Salaries to employees (91,000)

    cash flow generated from op: 154,000

    Financing

    Collected Interest on notes receivable 10,500

    Collection of notes receivable 52,000

    Issuance of notes payable 165,000

    Interest on notes payable (6,500)

    Payment of notes payable (38,000)

    Dividends to shareholders (33,000)

    Cash flow from financing 150,000

    Investing

    Sale of investments 32,000

    Purchase of equipment (86,000)

    Cash used in investing: (54,000)

    Total cash flow generated for the year: 250,000

    Beginning cash flow 24,000

    Ending Cash flow 274,000

    Cash Paid for: The balance of cash and cash equivalents at the beginning of 2021 was $24,000.
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