USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS Mellon Company Bal

ID: 2631336 • Letter: U

Question

USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS

Mellon Company
Balance Sheet
For the Years Ending December 31, 2010 and 2011

2010 2011
Cash 1,500 1,820
Account receivable 3,740 3,980
Inventory 10,120 8,470
Total current assets 15,360 14,270
Gross fixed assets 56,100 63,840
(Accumulated depreciation) (9,590) (11,000)
Net fixed assets 46,510 52,840
Total assets 61,870 67,110
Notes payable 1,000 1,000
Accounts payable 2,260 4,150
Accruals 1,570 1,640
Current portion of LT debt 470 1,730
Total current liabilities 5,300 8,520
Lont-term debt 37,750 34,790
Common stock 1,000 1,500
Paid in capital 4,800 9,460
Retained earnings 13,020 12,840
Total liabilities and equity 61,870 67,110
Additional Data from 2011 Income Statement:
Sales in 2011 238,000
Net income in 2011 9,940

25. Calculate the Cash flows from operating activities for 2011.
26. Calculate the Cash flows from investing activities for 2011.
27. Calculate the Cash flows from financing activities for 2011.

Explanation / Answer

Particulars

Amount($)

Cash flow from Operating Activities

Net Income

9940

Add:-Depreciation (11000-9590)

1410

Less:-Increase in Accounts Receivable

(240)

Add:-Decrease in Inventory

1650

Add:-Increase in Accounts Payable

1890

Add:-Increase in Accruals

Add:-Increase in Current portion of LT Debt

1260

CASH FLOW FROM OPERATING ACTIVITIES

15980

Cash flow from Investing Activities

Purchase of Fixed Asset (63840-56100)

(7740)

CASH FLOW FROM INVESTING ACTIVITIES

(7740)

Cost flow from Financing Activities

Redemption of Long Term Debt

(2960)

Issue of Common Stock

500

Paid in Capital

4660

Dividend paid (13020+9940-12840)

(10120)

CASH FLOW FROM FINANCING ACTIVITIES

(7920)

Net cash inflow during the year (15980-7740-7920)

320

Add:-Opening Cash Balance

1500

Closing Cash Balance

1820