Question

At the close of 2017. the financial statements of CLEO Corp. were as follows. All figures in the financial statements are in thousands (S000) CLEO Corp Balance Sheet For the year ended 12/31/2017 12/31/2016 12/31/2017 ASSETS Cash $ 500 $ 200 CLEO Corp Income Statement For the year ending 12/31/2017 Accounts Receivable Inventory CURRENT ASSETS 6.250 5.180 $11.930 7.300 6.470 $13.970 Sales COGS Gross Margin $22.560 506 $11.054 Fixed Assets Expense $5.332 Gross Accum. Deprec Net $7.500 (2.400) $5.100 $9.000 (3.100 $5.900 Depreciation EBIT Interest EBT Tax Net Income 700 $5.022 1180 $3.842 TOTAL ASSETS $17.030 $19.870 $2.305 LIABILITIES Accounts Pavable Accruals CURRENT LIABILITIES Long-term Debt Equity TOTAL CAPITAL TOTAL LIABILITIES AND EQUITY $2.210 $1.860 850 $2.710 $11.320 3.000 $14.320 $2.430 $12.335 5.105 $17.440 $17.030 $19.870 In addition, CLEO Corp. paid dividends of S1.2M and sold new stock valued at $1.0M during 2017 Required: Prepare the SCF. (Show all your work!)

Answer 1

Solution :

CLEO Corp.
Statement of Cash Flows
For year ended Dec 31, 2017
Particulars	Details	Amount (In '000)
Cash Flow from Operating Activities:
Net Income	$2,305.00
Adjustments to reconcile net income to net cash provided by operations:
Depreciation Expense	$700.00
Increase in accounts receivables ($7,300 - $6,250)	-$1,050.00
Increase in inventory ($6,470 - $5,180)	-$1,290.00
Increase in accounts payable ($2,210 - $1,860)	$350.00
Decrease in accrued liabilities ($850 - $220)	-$630.00
Net Cash provided by operating activities		$385.00
Cash Flow from Investing Activities:
Purchase of fixed assets	-$1,500.00
Net Cash used in Investing activities		-$1,500.00
Cash Flow from Financing Activities:
Proceed from issue of common stock	$1,000.00
Dividend Paid	-$1,200.00
Proceed from issue of long term debt ($12,335 - $11,320)	$1,015.00
Net Cash Provided by financing activities		$815.00
Net Increase / (Decrease) in Cash		-$300.00
Cash balance at beginning of year		$500.00
Cash balance at end of year		$200.00