To employees 276850 for other expenses 10150 for

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To employees 276,850 For other expenses 10,150 For interest 73,000 For income taxes 43,000 1,077,000 Net cash provided by operating activities 156,250 Cash flows from investing activities Purchase of plant assets (48,000) Cash flows from financing activities Cash received from common stock issue $ 40,000
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Cash paid For dividends (105,000) To retire bonds payable (30,000 ) Net cash used by financing activities (95,000 ) Net increase in cash 13,250 Cash, June 1, 2007 20,000 Cash, May 31, 2008 $ 33,250 Note 1 : Noncash investing and financing activities: Issuance of common stock for plant assets $50,000. Supporting Calculations : Collections from customers Sales $1,255,250 Less: Increase in accounts receivable 22,000 Cash collected from customers $1,233,250 Cash paid to suppliers Cost of merchandise sold $722,000 Less: Decrease in merchandise inventory 40,000 Increase in accounts payable 8,000 Cash paid to suppliers $674,000 Cash paid to employees Salary expense $252,100 Add: Decrease in salaries payable 24,750 Cash paid to employees $276,850 Cash paid for other expenses Other expenses $ 8,150 Add: Increase in prepaid expenses 2,000 Cash paid for other expenses $10,150 Cash paid for interest Interest expense $75,000 Less: Increase in interest payable 2,000 Cash paid for interest $73,000
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Cash paid for income taxes:
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