Evaluate superb cash flows for the year

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Reference no: EM13268922

Prepare a statement of cash flows (direct method). Superb Digital Services, Inc. has provided the following data from the company's records for the year just ended.

a. Collection of interest $5,700

b. Cash sales $252,000

c. Credit sales $675,500

d. Proceeds from sale of investment $12,300

e. Gain on sale of investment $2,500

f. Payments to suppliers $572,900

g. Cash payments to purchase plant assets $52,100

h. Depreciation expense $63,800

i. Salaries expense $77,500

j. Payment of short-term note payable by issuing common stock $72,100

k. Cost of goods sold $567,600

l. Proceeds from issuance of note payable $24,300

m. Income tax expense and payment $38,600

n. Proceeds from issuance of common stock $22,000

o. Cash receipt of dividend revenue $6,700

p. Interest revenue $6,000

q. Payment of cash dividends $28,900

r. Collections of accounts receivable $574,300

s. Amortization expense $3,400

t. Payments on long-term notes payable $45,300

u. Interest expense and payments $12,100

v. Purchase of equipment by issuing common stock to seller $17,500

w. Payment of salaries $74,500

x. Proceeds from sale of plant assets $24,700

y. Loss on sale of plant assets $3,500

z. Cash and cash equivalents balance, beginning of year $25,700

Attempt the following exercises to complete this assessment successfully:

1. Prepare the statement of cash flows for Superb Digital Services, Inc., using the direct method for cash flows from operations. Note that you will need to calculate the ending balance of cash and cash equivalents. Include a schedule of noncash investing and financing activities.

2. Evaluate Superb's cash flows for the year. Discuss each of the categories of cash flows in your response.

Reference no: EM13268922

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