Question

SCF Company - due March 2, 2020 - Prepare the Statement of Cash Flows Company Smart had the following balance sheet data for 2018 and 2019: Cash Accounts Receivable Merchandise Machinery Accumulated Depreciation Long-term Investments Total Assets 12/31/2018 $ 23,000 26,000 38,000 34,000 (23,000) 28.000 $126.000 12/31/2019 $ 36,000 35.000 32,000 38.000 (24,000) 26,000 $143.000 Accounts Payable Expenses Payable Note Payable Common Stock Retained Earnings Total Liabs and Equities $ 18,000 6,000 30,000 34,000 38.000 $126.000 $ 24,000 4.000 28,000 38.000 49.000 $143.000 The Income Statement data, for the year ended December 31, 2019, is as follows: Sales Cost of Goods Sold Gross Profit General Expenses Depreciation Expense Net Income $ 138,000 (94.000 44,000 (22.000) (1.000) $ 21.000 Additional information: Cash dividends were declared and distributed, long-term investments were sold at book value. The note payable did not result from a trade inventory) transaction

Answer 1

Answer-

SCF COMPANY
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31,2019
Particulars		Amount
		$
Cash flow from operating activities
Net Income		21000
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation		1000
Change in operating assets & liabilities
Increase in accounts receivable		-9000
Decrease in inventory		6000
Increase in accounts payable		6000
Decrease in expenses payable		-2000
Net cash flow from operating activities (a)		23000
Cash Flow from Investing activities
New machinery purchased		-4000
Long-term investments sold		2000
Net cash Flow from Investing activities (b)		-2000
Cash Flow from Financing activities
Cash dividends paid	($38000+$21000-$49000)	-10000
Notes payable paid		-2000
Common stock issued		4000
Net cash Flow from Financing activities (c)		-8000
Net Change in cash c=a+b+c		13000
Beginning cash balance		23000
Closing cash balance		36000