Calculate: Cash flow from Operating Activities, Investing Activities, and Financ

Question

Calculate: Cash flow from Operating Activities, Investing Activities, and Financing activities

Use the following:

BALANC SHEET

INCOME STATEMENT

Assets Amount in Dollars Current Assets: Cash          30,000.00          40,000.00 Marketable Securities          10,000.00          10,000.00 Accounts Receivable        170,000.00        200,000.00 Inventory        160,000.00        180,000.00 Prepaid Expenses          30,000.00          20,000.00        400,000.00        450,000.00 Long Term investments          20,000.00          50,000.00 Plant and Equipment    1,000,000.00    1,100,000.00           Less Accumulated   Depreciation        550,000.00        600,000.00 Net Plant and Equipment        450,000.00        500,000.00 Total Assets        870,000.00    1,000,000.00 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable          45,000.00          80,000.00 Notes Payable        100,000.00        100,000.00 Accrued Expenses          35,000.00          30,000.00        180,000.00        210,000.00 Long Term Liabilities Bonds Payable, 2020          40,000.00          90,000.00 Total Liabilities        220,000.00        300,000.00 Stockholders' Equity Preferred Stock          50,000.00          50,000.00 Common Stock        100,000.00        100,000.00 Capital Paid in Excess of Par        250,000.00        250,000.00 Retained Earnings        250,000.00        300,000.00 Total Stockholders' Equity        650,000.00        700,000.00 Total Liabilities and Stockholders' Equity        870,000.00    1,000,000.00

Explanation / Answer

Indirect Method Operating Activities Net Income 110500 Add : Depreciation for the year 50000 Add: Interest Expense $20,000 180500 Changes in Assets and liabilities Less : Increase in A/c receivable $30,000 Lesss : Increase in Inventory $20,000 Add: Decrease in Prepaid Expenses $10,000 Add: Increase in Accounts payables $35,000 Less:Accrued Expenses $5,000 ($10,000) Cash from operating activities $170,500 Investment Activities Less :Purchase of Long term Investment(50000 - 20000) $30,000 Less :Purchase of Equipment (1100000 - 100000) $100,000 Cash from Investment Activities ($130,000) Finance Activities Bonds payable issue (90000 - 40000) $50,000 Less :Interest Expense $20,000 Less: Cash dividends paid $50,000 less; dividend on preferred stock $10,500 Cash from Finance Activities ($30,500) Total cash from all the activities $10,000 Add: Opening Cash Balance $30,000 Closing cash balance (Balance figure) $40,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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