3.34 points Problem 11-2B Basic format for the statement of cash flows (L011-2.

Question

3.34 points Problem 11-2B Basic format for the statement of cash flows (L011-2. 11-3) Natalie King has completed the basic format to be used in preparing the statement of cash flows (ndirect method) for CPU Hardware Designers All amounts are in thousands For the year ended December 31, 2018 from Operating Adjustments to reconcile net income to net cash flows from 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 ( s (28,000) 90,000 ) in cash Cash at the beginning of the period Cash at the end of the period s 62,000 Below, in random order, are line items to be included in the statement of cash lows

Explanation / Answer

Cashflow statement by indirect Method a Cashflow from operation activity Amounts Amount Net Income $        80,000 Add: Depreciation $        30,000 Add: Loss on sale of Land $          8,000 Working Capital Adjustment Accounts receivables $     (70,000) Inventory $     (40,000) Accounts payable $        11,000 Prepaid rent $     (11,000) Sub Total $        8,000 b Cashflow from Investment activity Equipment Asset Purchased $   (230,000) Sale of Land $          4,000 Sub Total $ (226,000) c Cashflow from Financing activity Common Stock Issue $     300,000 Note payable $     (60,000) Dividend Paid $     (50,000) Sub Total $   190,000 d Net cashflow (a+b+c) $   (28,000) e Opening Cash $      90,000 f Closing Cash (d+f) $      62,000

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