The following summary transactions occurred during 2018 for Bluebonnet Bakers: Cash Received from: Customers $ 380,000 Interest on note receivable 6,000 Principal on note receivable 50,000 Sale of investments 30,000 Proceeds from note payable 100,000 Cash Paid for: Purchase of inventory 160,000 Interest on note payable 5,000 Purchase of equipment 85,000 Salaries to employees 90,000 Principal on note payable 25,000 Payment of dividends to shareholders 20,000 The balance of cash and cash equivalents at the beginning of 2018 was $17,000. Required:
Prepare a statement of cash flows for 2018 for Bluebonnet Bakers. Use the direct method for reporting operating activities.

Statement of cash flows for the year ended 2018

Cash flow from Operating Activities

Cash Receipts from Customers                            $ 380,000

Cash Paid to Suppliers and Employees              ($250,000)

Cash Generated from Operations                         $130,000

Interest on note payable                                          ($5,000)

Net Cash from Operating Activities                       $125,000

Cash flow from Investing Activities

Interest on note receivable                                      $ 6,000

Principal on note receivable                                  $ 50,000

Sale of investments                                                $ 30,000

Purchase of equipment                                         ($85,000)

Net Cash from Investing Activities                            $1,000

Cash flow from Financing Activities

Proceeds from note payable                                $100,000

Principal on note payable                                     ($25,000)

Dividends Paid                                                       ($20,000)

Net Cash from Financing Activities                        $55,000

Movement in Cash and Cash Equivalents             $151,000

Beginning Cash and Cash Equivalents                   $17,000

Ending Cash and Cash Equivalents                      $168,000

Explanation:

The Direct Method Include only the Cash receipts from customers and Cash payments to suppliers and employees in the calculation of cash generated from operations under the Cash flow from Operating Activity Section of the Statement.

Calculation of Cash Paid to Suppliers and Employees

Purchase of inventory                                     $160,000

Salaries to employees                                      $90,000

Cash Paid to Suppliers and Employees        $250,000

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total