Question

Exterra Communications reported the following financial statements for 2018: EXTERRA COMMUNICATIONS Income Statement Year ended June 30, 2018 Sales revenue Cost of goods sold Depreciation expense Salary expense Other expenses, including income taxes Total expenses Net income 5660 $340 40 50 150 280 8.80 EXTERRA COMMUNICATIONS Comparative Balance Sheet June 30, 2018 and 2017 2018 2017 2018 2017 S.32 Thousands Assets Current Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets, net Liabilities Current: Accounts payable Salary payable Accrued liabilities Long-term notes payable $ 53 25 $ 42 $ 16 48 84 2 90 185 80 3 85 als 6 63 Stockholders' Equity Common stock Retained earnings Total 40 .289 Total $476 $425 Additional data during 2018 Exterza purchased no investments, but sold one investment. Extenta sold no plant assets, but purchased plant assets Externa had only one long-term note payable transaction Externa had only one common stock transactions Prepare Externa Communications' statement of cash flows for the year ended June 30, 2018 words ype here to search o e . w

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Answer 1

SUGAR COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED CURRENT YEAR
Operating activities
Net income		57000
Adjustment to reconcile net income to cash basis
Depreciation expense	31000
Gain on sale of equipment	-8000
Increase in accounts receivable (35000-22000)	-13000
Increase in inventory (104000-78000)	-26000
Decrease in prepaid expense (5000-6000)	1000
Increase in accounts payable (20000-14000)	6000
Increase in interest payable	3000
Decrease in income taxes payable (8000-6000)	-2000	-8000
Net cash flow from operating activities [A]		49000
Investing activities
sale of equipment [5000book value +8000gain]	13000
Purchase of equipment	-102000
Net cash flow from investing activities [B]		-89000
Financing activities
Issue of bond payable	50000
payment of dividend	-14000
cash flow from financing activities [C]		36000
Net increase/(Decrease ) in cash during the year [A+B+C]		-4000
Beginning cash balance	`	16000
Cash at end		12000

**conversion of bond payable to common stock is a non cash transaction

**Increase in current asset and decrease in current liabilities is subtracted from net income

Decrease in current asset and increase in current liabilities is added to net income