Problem Set 13.1A The accounting staff of Harris Company has assembled the following information for the year ended December 31, 2011: Cash Sales ….

Problem Set 13.1AThe accounting staff of Harris Company has assembled the following information for the year ended December 31, 2011:Cash Sales …………………………………………………………….. $800,000Credit Sales …………………………………………………………… 2,500,000Collections of accounts receivable ………………………… 2,200,000Cash transferred from the money market fund to the general bank account …………………………………………….. 250,000Interest and dividends received …………………………….. 100,000Purchases (all on account) ………………………………………. 1,800,000Payments on accounts payable to merchandise suppliers …………………………………………….. 1,500,000Cash payments for operating expenses ………………….… 1,050,000Interest paid …………………………………………………………….. 180,000Income taxes paid …………………………………………………….. 95,000Loans made to borrowers ………………………………………… 500,000Collection on loans (excluding receipts of interest) …… 260,000Cash paid to acquire plant assets ……………………………….. 3,100,000Book value of plant assets sold …………………………………… 660,000Loss on sales of plant assets ……………………………………….. 80,000Proceeds from issuing bonds payable ………………………….. 2,500,000Dividends paid …………………………………………………………… 120,000Cash and cash equivalents, Jan. 1 ……………………………….. 489,000Instructions Prepare a statement of cash flows in the format illustrated in Exhibit 13-1. Place brackets around amounts representing cash outflows. Use the direct method of reporting cash flows from operating activities. Some of the items above will be listed in your statement without change. However, you will have to combine given information to compute the amounts of (1) collections from customers, (2) cash paid to suppliers and employees, and (3) proceeds from sales of plant assets. (Hint: Not every item listed is used in preparing a statement of cash flows.)