Question

eBook Calculator Problem 11-56A (Algorithmic) Preparing a statement of Cash Flows Monon Cable Television Company reported the following financial statements for 2019: Monon Cable Television Company Income Statement For the year ended December 31, 2019 Sales $519,000 Less operating expenses: Royalties expense Salaries expense $240,000 26,000 83,000 Utilities expense Supplies expense 13,000 Rent expense 79,000 Depreciation expense 28,000 469,000 Income from operations $50,000 Other income (expenses) Gain on disposal of property, plant and equipment $800 Interest expense (1,800) (1,000) Income before taxes $49,000 Less: Income taxes expense Check My Work 5 more Check My Work uses remaining, Previous All work saved Email Instructor Save and Exit Submit Assignment for Grading : "

Answer 1

Cash Flow statements
Cashflow from Operating Activities:
Income before income taxes		49000
Add: Non-cash and Non-operating items:
Changes in working capital:
Accounts receivable	-5300
Royalties Payable	200
Rent Payable	-8700
Supplies	500
Accounts payable	-1500	-14800
Depreciation		28000
Profit on sale of scrap		-800
Taxes Paid		-9000
Interest paid		1800
So, Cashflow from Operating Activities:			54200
Cashflow from Investing Activities:
Building purchased		-20000
Trucks Purchased		-6000
Antenna Sold		1800
Antenna Purchased		-60000
So, Cashflow from Investing Activities:			-84200
Cashflow from Financing activities:
Dividends Paid		-14090
long term Notes payable Borrowed		39890
Intrest Paid		-1800
So, Cashflow from Financing activities:			24000
Total Cashflows during the year			-6000
Add: Opening Balance of cash and cash equivalents			8000
Closing Balance of cash and cash equivalents			2000

Please comment in case of any query regarding the solution.