Below is a condensed Income Statement for the SPECTRE Company for 2018 along wit

Question

Below is a condensed Income Statement for the SPECTRE Company for 2018 along with balance sheet information Income statement service revenue 3,660,000 Operating expenses 2,700,000 income b4 income tax 960,000 Income tax expense 288,000 Net income 672,000 Balance sheets 12/31/2018 12/31/2017 Cash 1,317,000 270000 accounts receivable 480,000 360,000 Wages payable 330,000 240,000 Income taxes payable 90,000 165,000 Additional information a) During the year Sprectre issued common stock for $420,000 b) Long-term investments were sold by Spectre during the year for $210,000. Spectre had originally purchased the investments for $210,000 c) During the year Spectre paid cash dividends of $300,000 to its owners d) Spectre has no outstanding debt except for those listed in the partial balance sheet e) Operating expenses include $150,000 in depreciation expense REQUIRED:   PREPARE A 2018 CASH FLOW STATEMENT FOR SPECTRE.   Below is a condensed Income Statement for the SPECTRE Company for 2018 along with balance sheet information Income statement service revenue 3,660,000 Operating expenses 2,700,000 income b4 income tax 960,000 Income tax expense 288,000 Net income 672,000 Balance sheets 12/31/2018 12/31/2017 Cash 1,317,000 270000 accounts receivable 480,000 360,000 Wages payable 330,000 240,000 Income taxes payable 90,000 165,000 Additional information a) During the year Sprectre issued common stock for $420,000 b) Long-term investments were sold by Spectre during the year for $210,000. Spectre had originally purchased the investments for $210,000 c) During the year Spectre paid cash dividends of $300,000 to its owners d) Spectre has no outstanding debt except for those listed in the partial balance sheet e) Operating expenses include $150,000 in depreciation expense REQUIRED:   PREPARE A 2018 CASH FLOW STATEMENT FOR SPECTRE.  

Explanation / Answer

SPECTRE

Cash Flow Statement

For year ended 31st December 2018

A. Cash Flows from Operating Activity

672000

Net Income

Adjustments

Depreciation expense

$    150,000.00

Increase in Accounts receivables

$ (120,000.00)

Increase In accrued Expenses

$      15,000.00

$        45,000.00

Net cash flow from Operating activities

$      717,000.00

B. Cash flows from Investing Activities

Sale of Investment

$    210,000.00

Net Cash flows from Investing activities

$      210,000.00

C. Cash Flows from Financing activities

Issuance of Common Stock

$    420,000.00

payments of dividends

$ (300,000.00)

Cash flows from Financing activities

$      120,000.00

Net Increase (Decrease) in Cash [A+B+C]

$ 1,047,000.00

Cash at the beginning

$      270,000.00

Cash at the end

$ 1,317,000.00

SPECTRE

Cash Flow Statement

For year ended 31st December 2018

A. Cash Flows from Operating Activity

672000

Net Income

Adjustments

Depreciation expense

$    150,000.00

Increase in Accounts receivables

$ (120,000.00)

Increase In accrued Expenses

$      15,000.00

$        45,000.00

Net cash flow from Operating activities

$      717,000.00

B. Cash flows from Investing Activities

Sale of Investment

$    210,000.00

Net Cash flows from Investing activities

$      210,000.00

C. Cash Flows from Financing activities

Issuance of Common Stock

$    420,000.00

payments of dividends

$ (300,000.00)

Cash flows from Financing activities

$      120,000.00

Net Increase (Decrease) in Cash [A+B+C]

$ 1,047,000.00

Cash at the beginning

$      270,000.00

Cash at the end

$ 1,317,000.00

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