prepare ksg rsquo s statement of cash flows for the year ended june 30 2012 use the 644589

Aug 30, 2021 | Uncategorized

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

  1. Purchase of plant assets, $57,400.
  2. Cash receipt from issuance of notes payable, $48,100.
  3. Payments of notes payable, $45,000.
  4. Cash receipt from sale of plant assets, $23,500.
  5. Cash receipt of dividends, $4,300.
  6. Payments to suppliers, $371,300.
  7. Interest expense and payments, $13,500.
  8. Payments of salaries, $92,000.
  9. Income tax expense and payments, $38,000.
  10. Depreciation expense, $56,000.
  11. Collections from customers, $607,000.
  12. Payment of cash dividends, $45,400.
  13. Cash receipt from issuance of common stock, $65,900.
  14. Cash balance: June 30, 2011, $39,300; June 30, 2012, $125,500.

Requirement

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