Prepare statement of cash flows for mash corporation

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Reference no: EM132781293

Problem 1: In order to prepare the statement of cash flows for Mash Corporation for 2019, the accountant has compiled the following data regarding cash flows:

Purchases of marketable securities

$107,000

Proceeds from sales of marketable securities

$152,000

Interest and dividends received

$81,600

Interest paid

$56,200

Taxes paid

$75,500

Dividends paid

$39,500

Proceeds from short-term borrowing

$161,500

Payments to settle short-term debts (principal repaid)

$98,500

Cash received from customers

$641,000

Cash paid to suppliers and employees

$513,000

Proceeds from issuing capital stock

$818,000

Purchases of plant assets

$528,000

Proceeds from sales of plant assets

$488,000

Cash and cash equivalents, beginning of year

$139,500

Problem 2: Based on the above information, prepare one complete statement of cash flows for Mash Corporation, showing the computation of net cash flows from operating activities by the direct method. Include a correct heading and presentation format.

Problem 3: Based on the statement of cash flows prepared from the above information, briefly explain if the company is generating enough cash to pay its obligations as they come due.

Reference no: EM132781293

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