On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or end of the year.
Accounts Common Stock, $10 par
Date Item Debit Credit Balance
Debit Credit
2008
Jan 1 Balance,70000 shares 700000
Feb 11 16000 shares issued for cash 160000 860000
June 30 4100 share stock dividend 41000 901000
Account Paid-In Capital in Excess of Par-Common Stock
2008
Jan 1 Balance 140000
Feb 11 16000 shares issued for cash 336000 476000
June 30 Stock dividend 102500 578500
Accounts Retained Earnings
2008
Jan 1 Balance 1000000
June 30 Stock dividend 143500 856500
Dec 30 Cash dividend 124000 732500
31 Net income 630000 1362500
EX14-23 The income statement for Wholly Bagel Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:
Sales $184000
Cost of merchandise sold 67000
Gross profit 117000
Operating expense
Depreciation expense $14500
Other operating expenses 49000
Total operating expenses 63500
Income before income tax 53500
Income tax expense 15400
Net income 38100
End of Year Beginning of the Year
Accounts receivable $14800 $12900
Inventories 38100 33100
Prepaid expenses 6000 6600
Accounts payable 279000 25900
Accrued expenses 7900 8600
Income tax payable 1500 1500
Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.