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P14A-12A MPG, Inc., accountants

Price: $2.50


P14A-12A Preparing the statement of cash flows—direct method [35–45 min]
MPG, Inc., accountants have developed the following data from the company’s
accounting records for the year ended April 30, 2012:
6
Purchase of plant assets, $59,400.
Cash receipt from issuance of notes payable, $46,100.
Payments of notes payable, $44,000.
Cash receipt from sale of plant assets, $24,500.
Cash receipt of dividends, $4,800.
Payments to suppliers, $374,300.
Interest expense and payments, $12,000.
Payments of salaries, $88,000.
Income tax expense and payments, $37,000.
Depreciation expense, $59,900.
Collections from customers, $605,500.
Payment of cash dividends, $49,400.
Cash receipt from issuance of common stock, $64,900.
Cash balance: April 30, 2011, $40,000; April 30, 2012, $121,700.

Requirement
1. Prepare MPG’s statement of cash flows for the year ended April 30, 2012. Use
the direct method for cash flows from operating activities.

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