Question

prepare the statement of cash flow

shonttennivesthents CHin: Remember that a et se cal be Rhodes Corporation: Income Statements for Year Ending December 31 (Millionsf 2010 2009 Sales Operating costs excluding depreciation Depreciation Earnings before interest and taxes $11,000 9,360 380 S 1,260 120 S 1,140 $10,000 8,500 360 S 1,140 Less interest Earnings before taxes S 1,040 Taxes (40%) Net income available to common stockholders Common dividends S 624 S 684 S 220 S 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2010 2009 Asets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets S 550 110 2,750 I,650 $5,060 S 500 100 2,500 1,500 $4,600 3,500 $8,100 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $1,100 550 384 $2,034 $1,000 500 200 $1,700 1,000 $2,700 4,400 $3,134 4,312 1,464 $5,400 S8,100 $8,910

Answer 1

(Million ) Statement of Cashflows using Indirect Method for the vear ended 2010: Particulars Cashflow from Operations: Net Income/(Loss) Adjustments to Reconcile Net Income to Net cash Provided by Operating Activties: Add:- Depreciation Expense Changes in Working Capital:- Less: Increase in Short term Investments Less: Increase in Accounts Receivable Less: Increase in Inventories Add: Increase in Accounts Payable Add: Increase in Accruals Add: Increase in Notes Payable AmountS Amount $ 684 380 (10) (250) (150) 100 50 184 304 Cash Provided by Operating Activities 988 Cash Flows From Investing Activities: Cash paid for purchase of Plant and Equipment (3850 380-3500) Cash Provided by Investing Activities (730) (730) Cash Flows From Financin Cash received from Long term debt Cash paid for Buyback of Common stock Cash paid for Dividends Cash Provided by Financing Activities Net Increase/(Decrease) in cash Cash at the beginning of the period Cash at the end of the period 100 (88) (220) (208) 50 500 550