I need help with preparing a statement of cash flows for Genesis Corp. Please He

Question

I need help with preparing a statement of cash flows for Genesis Corp. Please Help.
Thanks!


GENESIS CORPORATION
Income Statement

For the Year Ended December 31, 2010
Sales ....................................................................... $2,200,000
Cost of goods sold .........................................................1,300,000
Gross profits ............................................................... 900,000
Selling and administrative expense ................................. 420,000
Depreciation expense ...................................................... 150,000
Operating income ....................................................... 330,000
Interest expense ..............................................................90,000
Earnings before taxes ................................................ 240,000
Taxes .......................................................................... 80,000
Earnings after taxes ................................................... 160,000
Preferred stock dividends .................................................. 10,000
Earnings available to common stockholders ................... $ 150,000
Shares outstanding ......................................................... 120,000
Earnings per share .......................................................... $ 1.25


Statement of Retained Earnings
For the Year Ended December 31, 2010

Retained earnings, balance, January 1, 2010 ................$500,000
Add: Earnings available to common stockholders, 2010 150,000
Deduct: Cash dividends declared and paid in 2010 ..... 50,000
Retained earnings, balance, December 31, 2010 ........... $600,000


Comparative Balance Sheets
For 2009 and 2010

Year-End Year-End
Assets
2009 2010
Current assets:
Cash ......................................................................... $ 70,000 $100,000
Accounts receivable (net) ........................................ 300,000 350,000
Inventory ................................................................... .410,000 430,000
Prepaid expenses .......................................................... 50,000 30,000
Total current assets ................................................. 830,000 910,000
Investments (long-term securities) ................................ 80,000 70,000
Plant and equipment .....................................................2,000,000 2,400,000
Less: Accumulated depreciation ................................ 1,000,000 1,150,000
Net plant and equipment ................................................1,000,000 1,250,000
Total assets ............................................................ $1,910,000 $2,230,000


Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable ....................................................... $ 250,000 $ 440,000
Notes payable ............................................................ 400,000 400,000
Accrued expenses ..................................................... 70,000 50,000
Total current liabilities.............................................. 720,000 890,000
Long-term liabilities:
Bonds payable, 2010 ................................................. 70,000 120,000
Total liabilities .......................................................... 790,000 1,010,000
Stockholders’ equity:
Preferred stock, $100 par value .................................... ... 90,000 90,000
Common stock, $1 par value ..................................... 120,000 120,000
Capital paid in excess of par ...................................... 410,000 410,000
Retained earnings ...................................................... 500,000 600,000
Total stockholders’ equity ........................................ 1,120,000 1,220,000
Total liabilities and stockholders’ equity .......................... $1,910,000 $2,230,000
__________________________________________________________________

Explanation / Answer

Statement of Cash Flow Net Income 160000 Add: Depreciation expense 150000 Increase in Accounts receivable -50000 Increase in Inventory -20000 Decrease in Prepaid expense 20000 increase in Accounts payable 190000 Decrease in Accrued expense -20000 270000 Inflow from Operating Activities 430000 Investing Activities Purchase of Plant & Equipment -400000 Sale of Investment 10000 Issue of Bonds payable 50000 Cash Outflow from Investing Activities -340000 Financing Activities Preferred Dividends -10000 Common stock dividends -50000 Cash Outflow from Financing Activities -60000 Net Cash decrease during the year 30000 Beginning cash balance 70000 Ending cash Balance 100000

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