Preparation of a statement of cash flows

Reference no: EM131822321

Question: Preparation of a Statement of Cash Flows Denali Ale Company is a microbrewery in Anchorage. By the end of 20X1, the company's cash balance had dropped to $12,000, despite net income of $239,000 in 20X1. Its transactions affecting income or cash in 20X1 were as follows (in thousands):

1. Sales were $3,003, all on credit. Cash collections from customers were $2,890.

2. The cost of items sold was $2,096.

3. Inventory increased by $56.

4. Cash payments on trade accounts payable were $2,130.

5. Payments to employees were $305; accrued wages payable decreased by $24.

6. Other operating expenses, all paid in cash, were $105.

7. Interest expense, all paid in cash, was $26.

8. Income tax expense was $105; cash payments for income taxes were $107.

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 $21 cash.

14. Paid cash dividends of $89. Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities. Omit supporting schedules.

Reference no: EM131822321

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