Question

The comparative balance sheet of Carlson Education Supply at December 31, 2018, reported the following

Requirements:

1.) Prepare the statement of cash flows of Carlson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities.

2. ) Evaluate Carlson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.

3.) If Carlson plans similar activity for 2019, what is its expected free cash flow?

Click the icon to view the comparative balance sheet.) Carlson's transactions during 2018 included the following 囲click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare the statement of cash flows of Carlson Educational Supply for the year ended December 31, 2018. Use the indirect method to rep cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box em do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Carlson Educational Supply Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities Net Cash Provided by (Used for) Operating Activities

Answer 1

Statement of Cash Flows for the year ended 31 December,2018

Cash Flows from Operating Activities

Net Income $65600

Adjustments to Reconcile Net Income to Net Cash

Depreciation $17200

Decrease in Accounts Receivables 6700

Increase in Inventory (4700)

Increase in Accounts Payable 1000

Decrease in Accrued Liabilities (1000) $19200

Net Cash Provided by Operating Activities $84800

Cash Flows from Investing Activities

Purchase of Equipment (54600)

Purchase of Building (107000)

Net Cash used in Investing Activities (161600)

Cash Flows from Financing Activities   

Payment of Dividend (23200)

Issued Long term notes payable 54000

Issued Common Stock for Cash 113000

Net Cash provided by Financing Activities 143800

Net Increase in Cash $67000

Cash at the beginning of the period $18000

Cash at the end of the period $85000