Question

The following information is available for Whispering Winds Corp. for 2022.

Cash used to purchase treasury stock$ 122,655

Cash dividends paid55,590

Cash paid for interest57,120

Net income1,183,965

Sales revenue2,045,100

Cash paid for taxes252,450

Cash received from customers1,443,555

Cash received from sale of building (at book value)503,880

Cash paid for operating expenses196,350

Beginning cash balance28,050

Cash paid for goods and services711,705

Cash received from issuing common stock905,250

Cash paid to redeem bonds at maturity510,000

Cash paid to purchase equipment288,660

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Whispering Winds Corp.
Statement of Cash Flows—Direct Method
Choose the accounting period

December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022

Select an opening name for section one

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Select an item

        Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building

$Enter a dollar amount

Select between addition and deduction

LessAdd

: Select an opening subsection name

Cash Paid to Redeem Bonds at MaturityCash PaymentsCash Receipts from CustomersFor Goods and ServicesFor Income TaxesFor InterestFor Operating ExpensesIssuance of Common StockPayment of Cash DividendPurchase of EquipmentPurchase Treasury StockSale of Building

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

$Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Enter a total amount for this subsection

Select a closing name for section one

    Cash at Beginning of Period    Cash at End of Period    Cash Flows from Financing Activities    Cash Flows from Investing Activities    Cash Flows from Operating Activities    Net Cash Provided by Financing Activities    Net Cash Provided by Investing Activities    Net Cash Provided by Operating Activities    Net Cash used by Financing Activities    Net Cash used by Investing Activities    Net Cash used by Operating Activities    Net Decrease in Cash    Net Increase in Cash    

Enter a total amount for section one

Select an opening name for section two

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select a closing name for section two

    Cash at Beginning of Period    Cash at End of Period    Cash Flows from Financing Activities    Cash Flows from Investing Activities    Cash Flows from Operating Activities    Net Cash Provided by Financing Activities    Net Cash Provided by Investing Activities    Net Cash Provided by Operating Activities    Net Cash used by Financing Activities    Net Cash used by Investing Activities    Net Cash used by Operating Activities    Net Decrease in Cash    Net Increase in Cash    

Enter a total amount for section two

Select an opening name for section three

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select an item

    Cash Paid to Redeem Bonds at Maturity    Cash Payments    Cash Receipts from Customers    For Goods and Services    For Income Taxes    For Interest    For Operating Expenses    Issuance of Common Stock    Payment of Cash Dividend    Purchase of Equipment    Purchase Treasury Stock    Sale of Building    

Enter a dollar amount

Select a closing name for section three

    Cash at Beginning of Period    Cash at End of Period    Cash Flows from Financing Activities    Cash Flows from Investing Activities    Cash Flows from Operating Activities    Net Cash Provided by Financing Activities    Net Cash Provided by Investing Activities    Net Cash Provided by Operating Activities    Net Cash used by Financing Activities    Net Cash used by Investing Activities    Net Cash used by Operating Activities    Net Decrease in Cash    Net Increase in Cash    

Enter a total amount for section three

Select an item

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Enter a total amount for three sections

Select an item

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Enter a dollar amount

Select a closing name for this statement

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

$Enter a total of the two previous amounts

Answer 1

Solution:
	Statement of Cash Flows - Direct Method
	© www.excel-skills.com	Amount
	Cash flows from operating activities
	Cash Receipts:
	Cash receipts from customers	$      1,443,555
	Cash Payments:
	Cash paid for Goods and Services	$       (711,705)
	Cash paid for interest	$         (57,120)
	Cash Paid for Taxes	$       (252,450)
	Cash Paid for operating expenses	$       (196,350)
	Cash Generated from Operation
	Net cash from operating activities		$                 -
	Cash flows from investing activities
	Cash Paid for Purchase of Equipment	$       (288,660)
	Cash Received from sale of Building	$         503,880
	Net cash used in investing activities		$       215,220
	Cash flows from financing activities
	Cash paid to redeem bonds at maturity	$          (510,000)
	Purchase of Treasury Stock	$          (122,655)
	Cash received from issuing common stock	$         905,250
	Dividend Paid	$         (55,590)
	Net cash used in financing activities		$       217,005
	Net decrease in cash and cash equivalents		$       432,225
	Cash and cash equivalents at beginning of period		$         28,050
	Cash and cash equivalents at end of period		$       460,275