b. Make a statement of cash flows for year end 2008 Assets 2008 2007 Current ass
ID: 2581785 • Letter: B
Question
b. Make a statement of cash flows for year end 2008
Assets 2008 2007 Current assets Cash and cash equivaients Accounts receivable, net Other curent assets 6,921,934 3,763,212 2.450.500 13,135,646 7,139,482 1,040,194 264,000 8,443,676 Total current assets Property and equipment, net Other assets 10,644,375 118,42I 23,898,442 2,356,428 34,500 10,834.604 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Deferred revenue Promissory note due to related party Short term debt obligations 582,011 1,229,987 2,000,000 2,119.238 5,931,236 354,029 3,001,938 1.076,077 4,432,04*4 Total current liabilities Preferred stock: Series A Preferred Stock, S.001 par value. Authorized, 7,305,609; outstanding, 7,305,609 at December 31, 2008 and 2007 Series B Preferred Stock, S.001 par value. Authorized, 4,374,135; outstanding, 4,374,135 at December 31, 2008 and 2007 Series C Preferred Stock, $.001 par value. Authorized, 1,701,108 and 2,592,163 at December 31, 2008 and 2007, respectively; outstanding, 1,620,102 at December 31,2008 and 2007 Series C-1 Preferred Stock, S.001 par value. Authorized, 2,401,977; outstanding, 2,401,977 at December 31 2008 Common stock: Common Stock, S.001 par value. Authorized, 32,000,000 and 30,000,000 at December 31,2008 and 2007, respectively; outstanding, 10,785,636 and 10,741,886 at December 31, 2008 and 2007, respectively Capital in excess of par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 14,555,247 3,411,959 17,967,206 23,898.442 6,563,247 (160,687) 6,402,560 10,834.604Explanation / Answer
Particulars
Amount
Total Amount
Cash Flow from Operating Activities
Net Income
3,572,646
Add: Items for cash basis
Depreciation
451,808
Changes in current assets & Liabilities
Accounts Receivable (Increase)
(2,723,018)
Other Current Assets (Increase)
(2,186,500)
Accounts Payable (Increase)
227,982
Deferred Revenue(Decrease)
(1,771,951)
Promissory notes due (Increase)
2,000,000
Short Term obligations (Increase)
1,043,161
Other assets(Increase)
(83,921)
Cash Flow provided by operating activities
530,207
Cash Flow from Investing Activates
Purchase of Asset (Note 1)
(8,739,755)
Cash Used by Investing activity
(8,739,755)
Cash Flow from Financing Activity
Proceeds from issuance of preferred and common stock
7,992,000
Cash provided by Financing activities
7,992,000
Net outflow of Cash
(217,548)
Cash at the Beginning of year
7,139,482
Cash at end of year
6,921,934
Note 1: Calculation of asset purchased during the year
Property & Equipment Account
Particulars
Amount
Particulars
Amount
Opening Balance
2,356,428
Depreciation
451,808
Purchase of asset (Balancing Figure)
8,739,755
Closing Balance
10,644,375
TOTAL
11,096,183
TOTAL
11,096,183
Particulars
Amount
Total Amount
Cash Flow from Operating Activities
Net Income
3,572,646
Add: Items for cash basis
Depreciation
451,808
Changes in current assets & Liabilities
Accounts Receivable (Increase)
(2,723,018)
Other Current Assets (Increase)
(2,186,500)
Accounts Payable (Increase)
227,982
Deferred Revenue(Decrease)
(1,771,951)
Promissory notes due (Increase)
2,000,000
Short Term obligations (Increase)
1,043,161
Other assets(Increase)
(83,921)
Cash Flow provided by operating activities
530,207
Cash Flow from Investing Activates
Purchase of Asset (Note 1)
(8,739,755)
Cash Used by Investing activity
(8,739,755)
Cash Flow from Financing Activity
Proceeds from issuance of preferred and common stock
7,992,000
Cash provided by Financing activities
7,992,000
Net outflow of Cash
(217,548)
Cash at the Beginning of year
7,139,482
Cash at end of year
6,921,934
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.