Question

sing information regarding the Melville Corporation to answer Short Exercises 13-1 Use the following information regar through 13-3: Accounts payable increase........ Accounts receivable increase. Accrued liabilities decrease .... Amortization expense. . . . . ... Cash balance, January 1 .... Cash balance, December 31. Cash paid as dividends Cash paid to purchase land ....... Cash paid to retire bonds payable at par... Cash received from issuance of common stock. Cash received from sale of equipment.... Depreciation expense. ...... Gain on sale of equipment .... Inventory decrease....... Net income Prepaid expenses increase ... $12,000 4,000 5,000 7,000 22,000 23,000 31,000 90,000 60,000 37,000 19,000 29,000 4,000 13,000 80,000 2,000 L01 L01 SE13-1. Cash Flow from Operating Activities Using the information for the Melville Corporation above, calculate the cash flow from operating activities. SE13-2. Cash Flow from Investing Activities Using the information for the Melville Corporation above, calculate the cash flow from investing activities. SE13-3. Cash Flow from Financing Activities Using the information for the Melville Corporation above, calculate the cash flow from financing activities. The following information for Evans & Sons relates to Short Exercises 13-4 through 13-6: Cash flow from operating activities..... ................. $1,600,000 L01, ROA

Answer 1

The cash flow statement of Melville Corporation is presented below. The sections A,B, & C give the cash flow from operating activities, investing activities and financing activities respectively.

Cash Flow Statement of Melville Corporation For the year ending December, XXXX Particulars Amount (in $) Amount (in $) CASH FLOW FROM OPERATING ACTIVITIES Profit or Loss 80,000.00 A Net Profit before Taxation and Extraordinary Items Depreciation Amortization expense Gain on sale of equipment 80,000.00 29,000.00 7,000.00 (4,000.00) Net Profit before Working Capital Changes Add: Account Payable increase Add: Decrease in inventory 112,000.00 12,000.00 13,000.00 Less: Prepaid expenses increase Less: Account Receivable increase Less: Accrued Liabilities decrease (2,000.00) (4,000.00) (5,000.00) Net Cash Flows From Operating Activities 126,000.00 CASH FLOW FROM INVESTING ACTIVITIES Less: Cash paid to purchase land Add: Cash received from sale of equipment (90,000.00) 19,000.00 Net Cash Flows From Investing Activities (71,000.00) CASH FLOW FROM FINANCING ACTIVITIES Less: Cash paid to retire bonds at par Add: Cash received from issue of stocks Less: Cash paid as dividend (60,000.00) 37,000.00 (31,000.00) Net Cash Flows From Financing Activities (54,000.00) Net Changes in cash and cash equivalent (A+B+C) Add: Opening cash balance 1,000.00 22,000.00 Closing cash balance 23,000.00