Prepare the statement of cash flows of Orange Company using the direct method to report operating ac

Prepare the statement of cash flows of Orange Company using the direct method to report operating ac

Prepare the statement of cash flows of Orange Company using the direct method to report operating activities.

ORANGE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2017 2018 Assets Cash S 43 38 14 Petty cash 11 Accounts receivable 33 38 Allowance for uncollectible accounts (8) (10) Investment in A Corp 20 0 Investment in B Inc 15 37 34 Inventory Prepaid insurance 6 8 Supplies Land Building 15 11 80 100 160 160 Less: Accumulated depreciation Equipment Less: Accumulated depreciation (32) (40) 90 75 (30) (35) S 423 410 Liabilities Accounts payable Salaries payable Interest payable Note payable 29 32 8 4 4 3 180 160 Owner's Equity Owner's contribution 130 165 Capital 59 79 Withdrawal (20) S 423 410 ORANGE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue 222 Gain on sale of land 22 S 244 Expenses Cost of goods sold Bad debt expense 48 4 Insurance expense 34 Supplies expense Depreciation expense Salaries expense 42 23 38 Interest expense Utilities expenses Income from operations 9 18 216 28 Other income and expenses Loss on sale of equipment (3) Loss on sale of Investment A (5) Total other income and expenses (81 20 Net income Additional information from the accounting records: a) Equipment that originally cost $19 and had a book value of $9 was sold b) The building has a life of 20 years c) The equipment has a life of 5 years d) Land that originally cost $18 was sold olm an co m s

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