Prepare the cash flows from operating activities section


Problem:

The 2002 accounting records of Winona Ryder Co. reveal the following transactions and events.

Payment of interest                                              $6,000
Cash sales                                                          38,000
Receipt of dividend revenue                                  14,000
Payment of income taxes                                      15,000
Net income                                                          38,000
Payment of accounts payable for merchandise        90,000
Payment for land                                                  74,000
Collection of accounts receivable                         $180,000
Payment of salaries and wages                               65,000
Depreciation expense                                             18,000
Proceeds from sale of aircraft                                812,000
Purchase of equipment for cash                               22,000
Loss on sale of aircraft                                              3,000
Payment of dividends                                              14,000
Payment of operating expenses                                20,000

Instructions:

Prepare the cash flows from operating activities section using the direct method. (Not all of the above items will be used.)

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Accounting Basics: Prepare the cash flows from operating activities section
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