The following information was obtained from the Champion Company for the year ending 31 December 2014.
Cash paid to suppliers Ordinary share issued Equipment purchased Interest paid Cash receipts from customers Tax paid Proceeds from long-term bor rowing Collections of loans made Interest received Proceeds from sale of equipment Dividends paid Loans made to borrowers Cash and cash equivalents, 1 Jan 2014 Cash and cash equivalents, 31 December 2014$289,000$81,000$58,000$10,500$936,000$28,000$116,000$17,000$16,000$24,000$4,600$29,000$1,781,000$2,551,900 Using the direct method, prepare a statement of cash flows.
Analyze the impact of critical thinking skills on personal and social well-being.
Apply critical thinking skills for effectively making decisions.
Grasp the necessity of a "beginner's mind" in learning and critical thinking.
Acknowledge the role of critical thinking in questioning and challenging traditional practices and beliefs.
Definitions:
Gross Profit
The financial gain made after subtracting the cost of goods sold from total sales revenue.
Ending Inventory
The estimation of goods on hand for sale at the termination of an accounting period, figured by the formula: starting inventory plus acquisitions minus the cost of goods sold.
Inventory Turnover Ratio
A measure of how rapidly inventory is sold or used in a given period, calculated by dividing cost of goods sold by average inventory.
Days' Sales
Often refers to days' sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.