E4-16 - Bluebonnet Bakers

Required:

Prepare a statement of cash flows for 2011 for Bluebonnet Bakers. Use the direct method for reporting operating activities.

Exercise 4-16

Bluebonnet Bakers

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities:

Collections from customers 380,000

Interest on note receivable 6,000

Purchase of inventory (160,000)

Interest on note payable (5,000)

Payment of salaries (90,000)

Net cash flows from operating activities131,000

Cash flows from investing activities:

Collection of note receivable 50,000

Sale of investments 30,000

Purchase of equipment (85,000)

Net cash flows from investing activities(5,000)

Cash flows from financing activities:

Proceeds from note payable 100,000...