Summary Business Accounting

Question:

The following summary transactions occurred during 2013 for Bluebonnet Bakers:




The balance of cash and cash equivalents at the beginning of 2013 was $17,000.

Required:

Prepare a statement of cash flows for 2013 for Bluebonnet Bakers. Use the direct method for reporting

operating activities.



Answer:



Statement of Cash Flows

For the Year Ended December 31, 2013



Cash flows from operating activities:

Collections from customers $ 380,000

Interest on note receivable 6,000

Purchase of inventory (160,000)

Interest on note payable (5,000)

Payment of salaries (90,000)