Charlie Wi Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet Beginning Balance Ending Balance
Cash and cash equivalents $39.00 $31.00
Accounts receivable $61.00 $71.00
Inventory $65.00 $63.00
Plant and Equipment $598.00 $500.00
Less accumulated depreciation $267.00 $243.00
Total assets $496.00 $422.00
Liabilities and stockholders' equity:
Accounts payable $39.00 $44.00
Wages payable $16.00 $17.00
Taxes payable $23.00 $24.00
Bonds payable $209.00 $230.00
Deferred Taxes $14.00 $16.00
Common stock $65.00 $60.00
Retained Earnings $130.00 $31.00
Total Liabilities and stockholders equity $496.00 $422.00
Cost of goods 530
Gross Margin 325
Selling and administrative expense 164
Net operating income 161
Gain on sale of plant and equipment 12
Income before taxes 173
Income taxes 52
Net income 121
The company sold equipment for $17 that was originally purchased for $15 and that had accumulated depreciation of $10.
On the basis of the above information, you are to prepare a Statement of Cash Flows for management's use, and provide answers to the following questions. (Use the indirect method for operating activities section of the accounting report.)
How much cash did Wi pay to its vendors for inventory purchases?
How much cash did Wi pay to the government for income taxes?
How much cash did Wi pay as dividends to its stockholders?
Compute Free Cash
The balance statements and income statements into a statement of cash flows is examined.