Preparing a Cash Flow Statement from a Listing of Transactions
Haywire Systems had the following cash receipts and payments during 2000 (dollars in millions):
|
1. Cash received from customers |
$130 |
|
2. Cash paid to inventory suppliers |
42 |
|
3. Cash paid to employees as wages |
38 |
|
4. Paid income taxes |
31 |
|
5. Cash paid for other operating expenses |
17 |
|
6. Cash dividends paid to shareholders |
10 |
|
7. Cash paid to acquire equipment and vehicles |
75 |
|
8. Cash paid to retire bank loans |
25 |
|
9. Cash received from sale of land |
8 |
|
10. Cash received by a company issuing common stock |
85 |
Required
Based on the above information, using the direct method:
a. Determine cash flow from operations.
b. Determine cash flow from investments.
c. Determine cash flow from financing.
d. Calculate Haywire’s net income for 2000. If this is not possible, identify additional information that would be needed to determine net income.