Format of a Cash Flow Statement-Direct Method
Arrange the Following

question 27

Essay

Format of a cash flow statement-direct method
Arrange the following information to complete the statement of cash flows for Olympia Company. Place parentheses around those dollar amounts representing cash outlays.
$\begin{array}{|l|r|}\hline \text { Purchase of equity securities } & \$ 48,000 \\\hline \text { Proceeds from sales of equity securities } & \$ 75,000 \\\hline \text { Interest and dividends received } & \$ 19,500 \\\hline \text { Interest paid } & \$ 18,000 \\\hline \text { Tax paid } & \$ 43,500 \\\hline \text { Dividends paid } & \$ 27,000 \\\hline \text { Proceeds from short-term borrowing } & \$ 31,500 \\\hline \text { Payments to settle short-term debt (principal repaid) } & \$ 36,000 \\\hline \text { Cash receipts from customers } & \$ 681,000 \\\hline \text { Cash paid to suppliers and employees } & \$ 531,000 \\\hline \text { Proceeds from issuing ordinary shares } & \$ 118,500 \\\hline \text { Purchases of property, plant and equipment } & \$ 201,000 \\\hline \text { Proceeds from sales of property, plant and equipment } & \$ 58,500 \\\hline \text { Cash and cash equivalents, beginning of year } & \$ 73,500 \\\hline\end{array}$

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Definitions:

Reasonable Means

Methods or actions that are considered fair, sensible, and appropriate given the circumstances.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Communication

The process of exchanging information, ideas, thoughts, and feelings through spoken words, writing, signals, or behavior.

Mirror Image Rule

A principle in contract law that demands an acceptance must exactly match the terms of the offer for a valid contract to be formed.