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Green Bean​, Inc. began 2018 with cash of $ 52,000. During the​ year, Green Bean earned revenue of $ 598,000 and collected $ 624,000 from customers. Expenses for the year totaled $ 429,000​, of which Green Bean paid $ 215,000 in cash to suppliers and $ 204,000 in cash to employees. Green Bean also paid $ 145,000 to purchase equipment and a cash dividend of $ 49,000 to its stockholders during 2018.
Prepare the​ company's statement of cash flows for the year ended December​ 31, 2018.

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Answer:

Explanation:

The preparation of the Cash Flows from three Activities - Direct Method is shown below:  

Cash flow from Operating activities  

Collections from customers $624,000

Less: Cash paid to suppliers and employees  -$419,000

The total cash paid

= $215,000 + $204,000

= $419,000

Net Cash flow from Operating activities $205,000

Cash flow from Investing activities  

Purchase of equipment -$145,000

Net Cash flow from Investing activities -$145,000

Cash flow from Financing activities  

Cash dividends declared and paid -$49,000

Net Cash flow from Financing activities -$49,000

Net Cash flow from Operating activities $205,000

Net Cash flow from Investing activities -$145,000

Net Cash flow from Financing activities -$49,000

Net increase (decrease) in cash for the year is $11,000

Add: Beginning cash balance                             $52,000

Ending cash balance                                           $63,000

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