+1 862 207 3288 The controller for Summit Sales, Inc., provides the following information on transactions that occurred during the year:
a. Purchased supplies on credit, $30,000
b. Paid $22,600 cash toward the purchase in transaction a
c. Provided services to customers on credit, $37,800
d. Collected $47,000 cash from accounts receivable
e. Recorded depreciation expense, $7,350
f. Employees earned salaries, $9,200
g. Paid $9,200 cash to employees for salaries earned
h. Accrued interest expense on long-term debt, $2,400
i. Paid a total of $15,000 on long-term debt, that includes $2,400 interest from transaction h
j. Paid $1,850 cash for one-year’s insurance coverage in advance
k. Recognized insurance expense, $925, that was paid in a previous period
l. Sold old equipment with a book value of $3,900 for $3,900 cash
m. Declared cash dividend, $5,000
n. Paid cash dividend declared in transaction m
o. Purchased new equipment for $14,300 cash
p. Issued common stock for $20,000 cash
q. Used $28,100 of supplies to produce revenues
Summit Sales, Inc., uses the indirect method to prepare its statement of cash flows.
