Reference no: EM132529425
Question - Polanski Bottlers is a microbrewery in Milwaukee. By the end of 2006, the firm's cash balance had dropped to $10,000, despite net income of $240,000 in 2006. Its transactions affecting income or cash in 2006 were (in thousands):
1. Sales were $3,003, all on credit. Cash collections from customers were $2,901.
2. The cost of items sold was $2,096.
3. Inventory increased by $56.
4. Cash payments on trade accounts payable were $2,140.
5. Payments to employees were $305; accrued wages payable decreased by $24.
6. Other operating expenses, all paid in cash, were $104.
7. Interest expense, all paid in cash, was $26.
8. Income tax expense was $105; cash payments for income taxes were $108.
9. Depreciation was $151.
10. A warehouse was acquired for $540 cash.
11. Equipment was sold for $37 cash; original cost was $196, accumulated depreciation was $159.
12. Received $28 for issue of common stock.
13. Retired long-term debt for $25 cash.
14. Paid cash dividends of $88.
Required - Give a statement of cash flows using the direct method for reporting cash flows.