Prepare statement of cash flows using the direct method

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Reference no: EM131536274

Presented below are the December 31 financial statements for Apple Corporation (in $ Millions).

Apple Corporation Balance Sheets as of December 31 Assets Year 2 Year 1

Cash $29,025 $162,000

Accounts Receivable 263,250 141,750

Inventory 243,000 303,750

Long-Term Investments - 81,000 Totals $535,275 $688,500

Liabilities and Shareholders' Equity

Accounts Payable $101,250 $162,000

Other Current Liabilities 32,400 20,250

Notes Payable 94,500 135,000

Common Stock 168,750 168,750

Retained Earnings 138,375 202,500

Totals $535,275 $688,500

Apple Corporation Income Statement For the Year Ended December 31, Year 2

Sales $756,000

Cost of Goods Sold 506,250

Gross Profit 249,750

Operating expenses 243,000

Income from operations 6,750

Loss on Sale of long term investment (10,125)

Net loss $(3,375)

Cash dividends of $60,750 were paid to shareholders during Year 2. Prepare a statement of cash flows using the direct method.

Reference no: EM131536274

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