Could someone please check my work for a statement of cash flows using a direct method?
You were mostly right, but I get the following: Cash flows from operating activities Cash receipts from customers 870 Cash paid to suppliers and employees (662) Cash generated from operations 208 Interest paid (17) Income taxes paid (48) Net cash from operating activities 143 Cash flows from investing activities Proceeds from sale of equipment 57 Net cash used in investing activities 57 Cash flows from financing activities Proceeds from issue of share capital 30 Retirement of bonds (156) Dividends paid (27) Net cash used in financing activities (153) Net increase in cash and cash equivalents 47 CCE at beginning of period 23 CCE at end of period 70 You also need a note to disclose that new equipment worth $75,000 was acquired in exchange for $75,000 of bonds payable.
