Question

3-13. (Working with a statement of cash flows) Prepare a statement of cash flows from the following scrambled list of items. Increase in inventories Operating income Dividends Increase in accounts payable Interest expense Increase in common stock (par) Depreciation expense Increase in accounts receivable Increase in long-term debt Increase in short-term notes payable Increase in gross fixed assets Increase in paid in capital Income taxes Beginning cash $ 7,000 219,000 29,000 43,000 45,000 5,000 17,000 69,000 53,000 15,000 54.000 20,000 45,000 250.000 halvfar Pamplin Inc.

Answer 1

129,000 17,000 -69,000 -7,000 43,000 $ $ $ 113,000 -54,000 Statement of Cash Flows Operating activities: Net income Depreciation expense Increase in accounts receivable Increase in inventories Increase in accounts payable Net cash provided by operating activities Investing activities: Increase in gross fixed assets Net cash used by investing activities Financing activities: Cash paid for dividends Increase in common stock Increase in long-term debt Increase in short-term notes payable Increase in paid in capital Net cash provided by financing activities Net increase in cash Beginning cash Ending cash $ 54,000 -29,000 5,000 53,000 15,000 20,000 $ $ $ $ $ 64,000 123,000 250,000 373,000 Net income = Operating income - Interest expense - Income taxes Net income = $219,000 - $45,000 - $45,000 Net income = $129,000