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    E4-9 2002 accounting records of Winona Ryder Co.

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    The 2002 accounting records of Winona Ryder Co. reveal the following transactions and events.

    Payment of interest $ 6,000
    Cash sales 38,000
    Receipt of dividend revenue 14,000
    Payment of income taxes 15,000
    Net income 38,000
    Payment of accounts payable for merchandise 90,000
    Payment for land 74,000
    Collection of accounts receivable $180,000
    Payment of salaries and wages 65,000
    Depreciation expense 18,000
    Proceeds from sale of aircraft 812,000
    Purchase of equipment for cash 22,000
    Loss on sale of aircraft 3,000
    Payment of dividends 14,000
    Payment of operating expenses 20,000
    Prepare the cash flows from operating activities section using the direct method. (Not all of the above items will be used.)

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    Solution Preview

    Please note that in the Direct Method, we do not adjust Net Income, so Net Income does not appear on the Statement of Cash Flows using the ...

    Solution Summary

    The solution is in excel. A Partial Cash Flow Statement - Operating Activities Section for Winona Ryder Co.