naeiiar to be used in prepaing the statement of cash flows (in CPU HARDWARE DESI

ID: 2592353 • Letter: N

Question

naeiiar to be used in prepaing the statement of cash flows (in CPU HARDWARE DESI Statement of Cash Flows For the year ended December 31, 2018 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: 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 Cash at the beginning of the period S (54,800) 76,000 Cash at the end of the period S 21,200 Below, in random order are line items to be included in the statement of cash flows.

Explanation / Answer

Answer:

Cash flow statement

Particulars

Amount

cash flow from operating activities

Net income

66,000

Adjustment for non-cash expenses and incomes

Add: Depreciation

20000

Add: Loss on sale of land

6600

Income adjusted for non-cash items

26600

Increase in accounts receivable

-56000

Increase in accounts payable

12000

Increase in inventory

-26000

Increase in prepaid rent

-12000

Total Income adjusted for non-cash items

-82000

Net cash flow from operating activities

10,600

Cash flow from investing activities

Purchase of equipment

-216000

Cash received from sale of land

2600

Net cash flow from investing activities

-213400

Cash flow from financing activities

Issuance of common stock

230,000

Payment of dividend

-36000

Repayment of notes payable

-46000

Net cash flow from financing activities

148,000

Net increase / (decrease) in cash

-54,800

Cash at the beginning of the period

76000

Cash at the end of the period

21,200