smith tools company started business on october 1, 2023. its fiscal year runs through to spetember 30 of the following year. the following trabsactions occured in the fiscal year that started on october 1, 2023, and ended on september 30, 2024.
1. ocober 1, 2023, mary smith invested $170,000 to start the busienss and was issued 10,000 commom shares
2. october 1, smith tools borrowed $220,000 from a venture capitalist and signed a note payable
3. october 1, the company rented a building. the rental agreement was a two-year contract requiring quarterly rental payments of $15,000, payable in advance. the first payment was made on october 1, 2023. thereafter, payments were due on december 31, march 31, june 30, september 30 for each three- month period that followed. all of the rental payments were made as specified in the agreement.
4. october 1, the company purchased equipment costing $220,000 for cash
5. initial inventory was purchased for $85,000 cash
6. additional purchases of inventory durinf the year totalled $570,000 all on account
7. sales during the year totalled $850,000 of which $765,000 were on account
8. collections from customers on account totalled $650,000
9. payments to suppliers on account totalled $510,000
10. the cost pf inventory that was sold during the year was $550,000
11. selling and adminstrative expenses totalled $80,000 for the year. of this amount, $4,000 was unpaid at year end
12. interest on the note payable from the venture capitalist was paid at year end (september 30, 2024). the interest rate on the note is 10%. in addition, $20,000 of the note principal was repaid at that time
13. the equipment was depreciated based on an estimated useful life of 10 years and an estimated residual value of $20,000
14. the company decalred and paid a dividend of $5,000.
how do i prepare a statement of cash flow for 2024
