Assets (30%) Use the following financial statements and additional information to (1) Prepare a complete statement of cash flows for the year ended December 31, 2015. The eash from or used in operating activities should be reported using the direct method. (2) Which activity (operating, investing or financing activity) provides the highest eash inflow? Do you think it is adequate that the company has its cash flow from that activity? Wescott Company Statements of Financial Position December 34 Eash Accounts receivable, net... Merchandise inventory..... Prepaid expenses..... Equipment.......... Accumulated depreciation-Equipment.. Total-assets... Liabilities Accounts payable.... Income tax payable.... Notes payable (long term). Total liabilities................ Equity Share Capital.. Share Premium... Retained earnings.... 2015 $-85,600 72,850 +57,750 6,080 280,600 (80,600) $-65,200 56,750 +44,850 12,680 245,600 (97,600) $522,280 $427,480 $-52,850 45,240 59,200 $127.290 2014 200,000 53,000 +41,990 $-45,450 12,240 79,200 $136,890 +50,000 40,000 100,590
