2014 2013 Prepare a statement of cash flows for 2014 for Zubin Mehta Corporation
ID: 2422936 • Letter: 2
Question
2014
2013
Prepare a statement of cash flows for 2014 for Zubin Mehta Corporation
Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.2014
2013
Cash $ 311,520 $ 137,280 Accounts receivable 316,800 325,600 Investments 91,520 130,240 Equipment 524,480 422,400 Accumulated Depreciation-Equipment (186,560 ) (156,640 ) Current liabilities 235,840 265,760 Common stock 281,600 281,600 Retained earnings 540,320 311,520Additional information:
Investments were sold at a loss (not extraordinary) of $17,600; no equipment was sold; cash dividends paid were $52,800; and net income was $281,600.
Explanation / Answer
Amount
Net profit earned during the year
281600
Add- Dividend paid
52800
Add- non cash /non operating expenses
138960
Less non operating income
NIL
Add- Increase in Current liability/ decrease in current assets
Decrease in AR
8800
Less- Decrease in Current liability/ Increase in current assets
Decrease in current liability
29920
Net cash flow from operating activity
452240
Cash from investing activity
Sale of investment
21120
purchase of equipment
(72080)
Cash flow from investing
(50960)
Cash flow from Financing activity
Dividend paid
(52800)
Net cash inflow (A+B+C)
174240
Add- Cash and cash equivalent in beginning
137280
Cash and cash equivalent at end
311520
Amount
Net profit earned during the year
281600
Add- Dividend paid
52800
Add- non cash /non operating expenses
138960
Less non operating income
NIL
Add- Increase in Current liability/ decrease in current assets
Decrease in AR
8800
Less- Decrease in Current liability/ Increase in current assets
Decrease in current liability
29920
Net cash flow from operating activity
452240
Cash from investing activity
Sale of investment
21120
purchase of equipment
(72080)
Cash flow from investing
(50960)
Cash flow from Financing activity
Dividend paid
(52800)
Net cash inflow (A+B+C)
174240
Add- Cash and cash equivalent in beginning
137280
Cash and cash equivalent at end
311520
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