Use the Following Information About the Calendar-Year Cash Flows of Park

question 205

Essay

Use the following information about the calendar-year cash flows of Park Company to prepare a statement of cash flows (direct method) and a schedule of noncash investing and financing activities.
$\begin{array} { | l | l | } \hline \text { Cash and cash equivalents, beginning-year balance } & \$ 18,000 \\\hline \text { Cash and cash equivalents, year-end balance } & 78,750 \\\hline \text { Cash payments for merchandise inventory } & 75,750 \\\hline \text { Cash paid for store equipment } & 15,750 \\\hline \text { Cash borrowed on three-month note payable } & 22,500 \\\hline \text { Cash dividends paid } & 12,000 \\\hline \text { Cash paid for salaries } & 39,000 \\\hline \text { Cash payments for other operating expenses } & 48,000 \\\hline \text { Building purchased and financed by long-term note payable } & 78,000 \\\hline \text { Cash received from customers } & 220,500 \\\hline \text { Cash interestreceived } & 8,250 \\\hline\end{array}$

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Definitions:

Factors Affecting

Variables or conditions that can influence the outcome or behavior in various contexts, such as environmental, social, or psychological elements.

Aging

The process of becoming older, which entails biological, emotional, intellectual, and social changes.

Physical Changes

Alterations in the physical state or appearance of a substance or object, without changing its chemical composition.

Deterioration

The process of becoming progressively worse or the decline in quality or condition.