Construct the cash flow statement for the year 2014 Income Statement Shareholder
ID: 2756186 • Letter: C
Question
Construct the cash flow statement for the year 2014
Income Statement Shareholders Equity 2012 2013 2014 75,000 76,000 81,000 Sales Revenues 140,000 170,000 COGS (including Depreciation) 84,000 20,000 15,000 119,000 25,000 18,000 Price per share No of shares Dividends Paid S 85.00 10,000 16,400 77.00 10,000 5,800 10,000 Depreciation S A Expenses Operating Income 41,000 33,000 Interest Expense 12,000 15,000 Taxable Income 29,000 18,000 Income Tax (40%) 11,600 7,200 Net Income 17,400 10,800 Balance Sheet Cash & MS Accounts 2012 2013 2014 20,000 12,000 10,000 45,000 80,000 140,000 277,000 Receivable 35,000 70,000 120,000 245,000 55,000 90,000 150,000 305,000 Inventories Net PPE Total Assets Liabilities Accounts Payable 50,000 45,000 75,000 55,000 72,000 74,000 60,000 84,000 80,000 Short-term Debt LT Debt (8% Bonds) Total Liabilities 170,000 201,000 224,000Explanation / Answer
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income before taxes
$10,800
Changes in current operating assets and liabilities:
Increase in accounts receivable
($10,000)
Increase in merchandise inventory
($10,000)
Increase in accounts payable
$5,000
($15,000)
Net cash flow used for operating activities
($4,200)
Cash flows from investing activities:
Cash paid for PPE
($10,000)
Net cash flow used for investing activities
($10,000)
Cash flows from financing activities:
Cash received from issue of short term debt
$12,000
Cash received from issue of long term debt
$6,000
Cash received from sale of common stock
Less: Cash paid for dividends
($5,800)
Net cash flow from financing activities
$12,200
Net decrease in cash
($2,000)
Cash at beginning of period
$12,000
Cash at end of period
$10,000
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income before taxes
$10,800
Changes in current operating assets and liabilities:
Increase in accounts receivable
($10,000)
Increase in merchandise inventory
($10,000)
Increase in accounts payable
$5,000
($15,000)
Net cash flow used for operating activities
($4,200)
Cash flows from investing activities:
Cash paid for PPE
($10,000)
Net cash flow used for investing activities
($10,000)
Cash flows from financing activities:
Cash received from issue of short term debt
$12,000
Cash received from issue of long term debt
$6,000
Cash received from sale of common stock
Less: Cash paid for dividends
($5,800)
Net cash flow from financing activities
$12,200
Net decrease in cash
($2,000)
Cash at beginning of period
$12,000
Cash at end of period
$10,000
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