(Solution) - The income statement and additional data of Value World Inc -(2025 Original AI-Free Solution)

Paper Details

The income statement and additional data of Value World, Inc., follow:

Additional data:
a. Collections from customers are $12,000 less than sales.
b. Payments to suppliers are $2,300 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,500 more than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $210,000. Of this amount, $110,000 is paid in cash and $100,000 by signing a long-term note payable.
f. Proceeds from sale of land total $29,000.
g. Proceeds from issuance of common stock total $31,000.
h. Payment of a long-term note payable is $17,000.
i. Payment of dividends is $ 12,500.
j. Cash balance, June 30, 2015, was $25,000.
Requirements
1. Prepare Value World, Inc.'s, statement of cash flows and accompanying schedule of non cash investing and financing activities. Report operating activities by the direct method.
2. Evaluate Value World's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.