Prepare a Cash Flow Statement using the DIRECT Method.DO NOT use the INDIRECT Method Not all accounts listed may be used in this example Net income $600,000,00Cash December 31, 2021 $350,000,000.00Cash December 31 2022 ???????Depreciation Expense $1,500,000.00Collections from third party $1,600,000.00Decrease in accounts payable $1,700,000.00Paid employees $1,800,000.00Purchased stock $1,900,000.00Purchased land $2,000,000.00Paid mortgage $3,000,000.00Paid expansion loan $4,000,000.00Paid for insurance $1,100,000.00Patient Receivable $7,000,000.00

Using Direct Method of preparation of Statement of Cash Flows, Cash Collections and Cash payments…

Answered: Prepare a Cash Flow Statement using the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 41E: Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets...

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Prepare a Cash Flow Statement using the DIRECT Method.
DO NOT use the INDIRECT Method
Not all accounts listed may be used in this example

Net income		$600,000,00
Cash December 31, 2021		$350,000,000.00
Cash December 31 2022		???????
Depreciation Expense		$1,500,000.00
Collections from third party		$1,600,000.00
Decrease in accounts payable		$1,700,000.00
Paid employees		$1,800,000.00
Purchased stock		$1,900,000.00
Purchased land		$2,000,000.00
Paid mortgage		$3,000,000.00
Paid expansion loan		$4,000,000.00
Paid for insurance		$1,100,000.00
Patient Receivable		$7,000,000.00

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