The following information is available for Ramos Corporation for the year ended

Question

The following information is available for Ramos Corporation for the year ended December 31, 2014. Beginning cash balance $ 120,600 Accounts payable decrease 9,916 Depreciation expense 434,160 Accounts receivable increase 21,976 Inventory increase 29,480 Net income 761,388 Cash received for sale of land at book value 93,800 Cash dividends paid 32,160 Income taxes payable increase 12,596 Cash used to purchase building 774,520 Cash used to purchase treasury stock 69,680 Cash received from issuing bonds 536,000

Explanation / Answer

Cash flow statements by inderect method.

(680720)

Info is not fully given. But the Above soltion is correct with particulars given

Cash flow from operating activites Net income 761388 Depreciation Expense 434160 Increase in income tax payable 12596 Decrease in Account payable (9916) Increase in Account Receivables (21976) Inventory Increase (29480) Cash flow from operating activity 1146772 Cash flow from investing activities Sale of land 93800 Purchase of building (774520) Cash used in investing activity

(680720)

Cash flow from financing activities Issue of bond 536000 purchase of treasury stock (69680) Dividend Paid (32160) Cash flow from financing activity 434160 Net increase in cash during the year 900216 Opening Cash 120600 Closing Cash 1020816

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