Question

FIND THE CASH FLOW STATEMENT

Seatwork 2.1 CASH FLOW STATEMENT The following financial statements are from Lucena Company in ($): Cash Accounts Receivable (net) Inventories Fixed Assets (net) Dec. 31, 2018 14,000 22,000 65,000 85,000 Dec. 31, 2019 16,000 28,000 55,000 79,000 TOTAL ASSETS 186,000 178,000 Accounts Payable Bonds Payable Common Stock (par value of $10) Retained Earnings 30,000 60,000 60,000 36,000 15,000 75,000 60,000 28,000 TOTALL AND SE 186,000 178,000 INCOME STATEMENT FOR 2019 Sales Cost of Goods Sold Gross Margin Operating Expenses (including $20,000 of depreciation expense) Income before Taxes Income Taxes Income after Taxes 360,000 240,000 120,000 100,000 20,000 8,000 12,000

Answer 1

LUCENA COMPANY
Statement of Cash flows
For the Year Ended December 31, 2019
Cash flows from operating activities
Net Income		$    12,000
Adjustments to reconcile net income to ;
Depreciation	$    20,000
Increase in accounts receivable	$    (6,000)
Decrease in inventories	$    10,000
Decrease in accounts payable	$ (15,000)
		$       9,000
Net cash cash flow from operating activities		$    21,000
Cash flows from investing activities
Cash paid to purchase of fixed assets	$ (14,000)		85000-79000-20000
Net cash flow used by investing activities		$ (14,000)
Cash flows from financing activities
Cash paid for dividends	$ (20,000)		28000-36000-12000
Cash received from issuance of bonds	$    15,000		75000-60000
Net cash flow used by financing activities		$    (5,000)
Change in cash		$       2,000
Cash and at beginning of period		$    14,000
Cash and at end of period		$    16,000

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