Given:

(1) Provided delivery service to customers, who paid $1,390 in cash and owed $24,704 on account.

(2) Purchased new equipment costing $3,434; signed a long-term note.

(3) Paid $7,864 cash to rent equipment and aircraft, with $3,136 for rent this year and the rest for rent next year.

(4) Spent $864 cash to repair facilities and equipment during the year.

(5) Collected $24,285 from customers on account.

(6) Repaid $150 on a long-term note (ignore interest).

prepare a complete statement of cash flows using above data

Question

Business

Karsyn York

7 September, 21:58

Given:

(1) Provided delivery service to customers, who paid $1,390 in cash and owed $24,704 on account.

(2) Purchased new equipment costing $3,434; signed a long-term note.

(3) Paid $7,864 cash to rent equipment and aircraft, with $3,136 for rent this year and the rest for rent next year.

(4) Spent $864 cash to repair facilities and equipment during the year.

(5) Collected $24,285 from customers on account.

(6) Repaid $150 on a long-term note (ignore interest).

prepare a complete statement of cash flows using above data

+3

Answers (1)

Know the Answer?

Jaylin Mcpherson · Answer 1

Direct Method

Operting Activities

$1,390 Cash Collected from Services

-$7,864 Cash to rent Equipment

-$0,864 Cash to repair facilities

$24,285 Collected from customers

Financing Activities

-$0,150 Repaid Long Term

$16,797 Net Cash

Explanation:

These others activities are not included because doesn't inclulde movements of cash.

(2) Purchased new equipment costing $3,434; signed a long-term note.