Answer Happy

P12-7A. Statement of Cash Flows (Direct Method) Refer to the data given for the North Company in Problem P12-2A. Required Calculate the change in cash that occurred during 2019. Prepare a statement of cash flows using the direct method. a. b. LO4 (APF 12A X

a. Cash, December 31, 2019 Cash, December 31, 2018 Cash increase during 2019 Supporting computations: Cash received from customers: Given in Data Set on the balance sheets Insert lines as necessary $770,000 sales + $7,000 A/R decrease = 777,000 Cash paid for merchandise purchased: Cash paid to employees: SSS $ $ Example

Cash paid for advertising: Cash paid for interest: Sale of land: Sheet2 Purchase of equipment: Issuance of bonds payable: Sheet3 Sheet4 Sheet5 I

Purchase of treasury stock: Other Analysis Accumulated depreciation increased by $24,000, which is the amount of depreciation expense Common stock account balance did not change Retained earnings decreased by $25,000, which is the amount of net loss. I

ett Sheet2 North Company Cash flow from operating activities Cash received from customers Statement of Cash Flows For Year Ended December 31, 2019 Cash paid for merchandise purchased Cash paid to employees Cash paid for advertising Cash paid for interest Cash provided by operating activities Cash flow from investing activities Sale of land Purchase of equipment Cash used by investing activities Sheet3 Cash flow from financing activities Sheets + Sheet4 I

fx B D E Cash provided by operating activities Cash flow from investing activities Sale of land Purchase of equipment Cash used by investing activities Cash flow from financing activities Issuance of bonds payable Purchase of treasury stock Cash provided by financing activities Net increase in cash Cash at beginning of year Cash at end of year F G H IS J