PREPARING NET CASH FLOWS FROM OPERATING ACTIVITIES-DIRECT METHOD
Yogurt Plus, a restaurant, collected the following information on inflows and outflows for 2009:
|
Inflows
Sales (all for cash)
|
$379,000
|
|
Cash received from sale of common stock
|
50,000
|
|
Proceeds from issuance of long-term notes payable
|
40,000
|
|
Proceeds from sale of used restaurant fixtures
|
13,000
|
|
Proceeds from issuance of short-term note payable
|
35,000
|
|
Notes payable issued in exchange for kitchen equipment
|
30,000
|
|
Outflows
|
|
|
Cash payments made for merchandise sold
|
$203,000
|
|
Cash payments for operating expenses
|
125,000
|
|
Cash payments for interest
|
22,000
|
|
Cash payments for income taxes
|
8,000
|
|
Purchase of restaurant fixtures for cash
|
105,000
|
|
Principal payment on mortgage
|
35,000
|
|
Payment of dividends
|
6,000
|
|
Cost of kitchen equipment acquired in exchange for note payable
|
30,000
|
Yogurt Plus had a cash balance of $21,800 at 1/1/09.
Required:
Prepare a statement of cash flows, using the direct method to determine net cash flow from operating activities.