Natalie Daniels has completed the basic format to be used in preparing the state
ID: 2470527 • Letter: N
Question
Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s).
Below, in random order, are line items to be included in the statement of cash flows.
Prepare the statement of cash flows for CPU Hardware Designers using the indirect method.
CPU HARDWARE DESIGNERSStatement of Cash Flows
For the year ended December 31, 2015 Cash Flows from Operating Activities Net income Adjustments for noncash effects: Changes in current assets and current liabilities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash $ (51,400) Cash at the beginning of the period 73,000 Cash at the end of the period $ 21,600
Explanation / Answer
Statement of cash flows of CPU Hardware Designers for the year ended 31.12.2012
(Under Indirect method)
Particulars
Amount
Amount
Net income
73000
Adjustment for non-cash expenses and incomes
Add: Depreciation
20000
Add: Loss on sale of land
7000
Income adjusted for non-cash items
100000
Cash flow from operating activities
Increase in accounts receivable
(60100)
Increase in accounts payable
10700
Increase in inventory
(30200)
Increase in prepaid rent
(10300)
Net cash flow from operating activities
(89900)
Cash flow from investing activities
Purchase of equipment
(226000)
Cash received from sale of land
3900
Net cash flow from investing activities
(222100)
Cash flow from financing activities
Issuance of common stock
250000
Payment of dividend
(44800)
Repayment of notes payable
(57000)
Net cash flow from financing activities
148200
Net increase / (decrease) in cash
(63800)
Cash at the beginning of the period
84000
Cash at the end of the period
20200
Statement of cash flows of CPU Hardware Designers for the year ended 31.12.2012
(Under Indirect method)
Particulars
Amount
Amount
Net income
73000
Adjustment for non-cash expenses and incomes
Add: Depreciation
20000
Add: Loss on sale of land
7000
Income adjusted for non-cash items
100000
Cash flow from operating activities
Increase in accounts receivable
(60100)
Increase in accounts payable
10700
Increase in inventory
(30200)
Increase in prepaid rent
(10300)
Net cash flow from operating activities
(89900)
Cash flow from investing activities
Purchase of equipment
(226000)
Cash received from sale of land
3900
Net cash flow from investing activities
(222100)
Cash flow from financing activities
Issuance of common stock
250000
Payment of dividend
(44800)
Repayment of notes payable
(57000)
Net cash flow from financing activities
148200
Net increase / (decrease) in cash
(63800)
Cash at the beginning of the period
84000
Cash at the end of the period
20200
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