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Prepare a statement of cash flows, using the direct method to present cash flows from operating activities

Business & Finance

Business & Finance

Prepare a statement of cash flows, using the direct method to present cash flows from operating activities

 Prepare a statement of cash flows, using the direct method to present cash flows from operating activities

Exercise 4-19 – Wainwright Corporation

Required:

1. Analyze each transaction and classify each as a financing, investing and/or operating activity (a transaction can represent more than one type of activity). In doing so, also indicate the cash effect of each, if any. If there is no cash effect, simply place a check mark (√) in the appropriate column(s).

2. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $40,000.

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