prepare mpg rsquo s statement of cash flows for the year ended april 30 2012 use the 644587

Aug 30, 2021 | Uncategorized

Preparing the statement of cash flows—direct method MPG, Inc., accountants have developed the following data from the company’s accounting records for the year ended April 30, 2012:

  1. Purchase of plant assets, $59,400.
  2. Cash receipt from issuance of notes payable, $46,100.
  3. Payments of notes payable, $44,000.
  4. Cash receipt from sale of plant assets, $24,500.
  5. Cash receipt of dividends, $4,800.
  6. Payments to suppliers, $374,300.
  7. Interest expense and payments, $12,000.
  8. Payments of salaries, $88,000.
  9. Income tax expense and payments, $37,000.
  10. Depreciation expense, $59,900.
  11. Collections from customers, $605,500.
  12. Payment of cash dividends, $49,400.
  13. Cash receipt from issuance of common stock, $64,900.
  14. Cash balance: April 30, 2011, $40,000; April 30, 2012, $121,700.

 Requirement

1. Prepare MPG’s statement of cash flows for the year ended April 30, 2012. Use the direct method for cash flows from operating activities.