Intermediate accounting. Can you please help me with the statement of cash flows

Question

Intermediate accounting. Can you please help me with the statement of cash flows and what is the cash for January 1 and December 31?

G calculator- Google Searc x s://newconnect.mheducation.com/flow/connect.html t lI Saved Increase in inventory Decrease in prepaid rent Increase in accounts payable Increase in interest payable Increase in deferred service revenue Decrease in income taxes payable 2,400 290 1,700 240 340 390 Net cash flows from operating activities Cash flows from investing activities s 10,370 Purchase of equipment Sale of equipment (2,500) 2,400 Net cash flows from investing activities Cash flows from financing activities (100) Proceeds from loan payable Payment of dividends 7,800 2,400 Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 10,200 20,470 S 20,470

Explanation / Answer

Santana Industries

Statement of Cash Flows

For the year ended December 31, 2016

(In $ thousands)

Equipment Account

Accumulated Depreciation

Income tax payable Account

I. Cash flows from operating activities Net income 3,710 Add:Income tax provision 3,910 Profit before tax 7,620 Adjustments for non-operating and non-cash affects Interest expense 340 Depreciation 3,000 Operating profit before working capital changes 10,960 Less: Increase in current assets Accounts receivables -1,700 Inventory -2,400 Add: Decrease in current assets: Prepaid rent 290 Add: Increase in current liabilities: Accounts payable 1,700 Deferred service revenue 340 Less: Tax paid -4,300 Net cash flows from operating activities 4,890 II. Cash flows from Investing activities Purchase of equipments -6,800 Sale of equipments 1,900 Net cash used in Investing actvities -4,900 III. Cash flows from Financing activities Cash dividend paid -2,400 Raising of loan 7,800 Interest paid 100 Net cash flows from Financing activities 5,300 Net increase in cash (I+II+III) 5,290 Opening balance of cash 3,460 Closing balance of cash 8,750

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