EA3-E2 Create the Statement of Cash Flows for Big League Bullseye Corp. In this

Question

EA3-E2 Create the Statement of Cash Flows for Big League Bullseye Corp. In this exercise, you will use the indirect method to create a statement of cash flows in Excel for Big League Bullseye Corp. These amounts relate to September of 2016 $3,100 $2,400 $1,800 $1,500 $11,300 Purchase of Equipment Net Income Depreciation Expense Accounts Receivable (beginning) Accounts Receivable (ending) Accounts Payable (beginning) Accounts Payable (ending) $300 $2,500Purchase of Furniture $9,400Investment by owner $12,500 Nicholas Winfield, Drawing $7,300 Cash (beginning balance) $6,900 Use the techniques from this chapter to present the statement in good form.

Explanation / Answer

Solution :

Big League Bullseye Corp. Statement of Cash Flows For month ended September 30, 2016 Particulars Details Amount Cash Flow from Operating Activities: Net Income $300.00 Adjustments to reconcile net income to net cash provided by operations: Depreciation Expense $2,500.00 Increase in accounts receivables ($12,500 - $9,400) -$3,100.00 Decrease in accounts payable ($7,300 - $6,900) -$400.00 Net Cash used in operating activities -$700.00 Cash Flow from Investing Activities: Purchase of Equipment -$3,100.00 Purchase of Furniture -$2,400.00 Net Cash used in Investing activities -$5,500.00 Cash Flow from Financing Activities: Cash proceed from investment by owner $1,800.00 Drawing by owner -$1,500.00 Net Cash Provided by financing activities $300.00 Net Increase / (Decrease) in Cash -$5,900.00 Cash balance at beginning of month $11,300.00 Cash balance at end of month $5,400.00

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.