Visual Inspection – The following changes in account balances were taken from the adjusted trial balance of the Walson Company at the end of 2007:
|
Net Changes for 2007 |
||
|
Debit |
Credit |
|
|
Cash |
$2,100 |
|
|
Accounts receivable |
8,700 |
|
|
Inventory |
$2,500 |
|
|
Land |
1,900 |
|
|
Buildings and equipment |
10,400 |
|
|
Accumulated depreciation |
6,800 |
|
|
Accounts payable |
4,500 |
|
|
Salaries payable |
800 |
|
|
Income taxes payable |
1,000 |
|
|
Common stock, no par |
9,000 |
|
|
Retained earnings |
4,000 |
|
|
Sales |
69,000 |
|
|
Cost of goods sold |
34,000 |
|
|
Salaries expense |
17,200 |
|
|
Depreciation expense |
6,800 |
|
|
Income tax expense |
3,300 |
|
|
Totals |
$91,000 |
$91,000 |
In addition, the following information was obtained from the company’s records:
1. Land was sold, at cost, for $1,900
2. Dividends of $4,000 were declared and paid
3. Equipment was purchased for $10,400
4. Common stock was issued for $9,000
5. Beginning cash balance was $17,000
Required
Using visual inspection and the direct method, prepare a 2007 statement of cash flows for the Walson Company. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)