Clearly label the amount of each answer as positive or negative. You need to sho

Question

Clearly label the amount of each answer as positive or negative. You need to show your calculations.

Depreciation expense

1. Calculate the amount of cash flows from operations.

2. Calculate the amount of cash flows from investing activities.

3. Calculate the amount of cash flows from financing activities.

4. Calculate the net change in cash.

Net income
$369,000 Beginning Accounts Payable $119,000

Depreciation expense

   97,000 Ending accounts payable 146,000 Beginning accounts receivable 420,000 Purchase of equipment for cash 612,000 Ending accounts receivable 439,000 Issuance of long-term debt 200,000 Beginning inventory 516,000 Issuance of stock for cash 160,000 Ending inventory 560,000 Issuance of stock for land 110,000 Beginning prepaid expenses    42,000 Purchase of treasury stock 64,000 Ending prepaid expenses    48,000 Sale of long-term investment at cost 39,000

Explanation / Answer

Hi,

Please find the answer as follows:

1)

2)

3)

4) Net Change in Cash = 444000 - 573000 + 296000 = 147000

Thanks.

Cash flow from Operations Amount Net Income 369000 Add Depreciation 97000 Increase in Accounts Payable 27000 Less Increase in Accounts Receivables -19000 Less Increase in Inventory -44000 Less Increase in Prepaid Expenses -6000 Cash flow from Operations 424000

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