Question

Build a Statement of Cash Flows using the Indirect method for 2019.

2018 2017 $ 525,710 75,000 455,000 (25,000) 23,676 658,079 15,000 525,000 (105,000) 21,574 139,836 29,050 3,520 975,000 2,201,792 148,945 34,982 5,400 775,000 2,078,980 5,000,000 (1,500,000) 5,000,000 (2,000,000) 285,000 1,450,000 1,450,000 BALANCE SHEET December 31, 2019 Assets Cash $ (3,049,775) $ Marketable securities 209,000 Accounts receivable 1,665,425 Allowance for Bad Debt (266,468) Interest Receivable 71,875 Prepaid Advertising 13,333 Prepaid Insurance 462,280 Prepaid Rent 65,167 Office supplies 10,000 Inventory 727,850 Current Assets 6,008,237 Office furniture 230,000 Equipment 4,040,000 Accumulated depreciation (2,301,500) Long-term notes receivable 285,000 Land 850,000 Patent 158,125 Non-current Assets 3,261,625 Total Assets $ 9,269,862 $ Liabilities Accounts payable 977,638 $ Wages payable 27,500 Interest Payable 844 Short-term Note Payable 225,000 Deferred Revenue 534,135 Dividends payable 1,313,600 Bond interest payable 19,000 Current Liabilities 3,097,716 Long-term notes payable 1,342,000 Bonds Payable 1,000,000 Total Liabilities 5,439,716 Stockholders' Equity Common Stock 1,070,000 Additional Paid-in-Capital 2,818,406 Treasury Stock (595,000) Contributed capital 500,000 Retained earnings 36,740 Total Stockholder's Equity 3,830,146 Total Liabilities and SE $ 9,269,862 $ 4,735,000 6,936,792 4,950,000 7,028,980 $ $ 450,000 35,000 570,000 33,000 155,000 135,000 640,000 1,250,000 738,000 1,250,000 1,890,000 1,988,000 1,000,000 1,824,406 1,000,000 1,824,406 500,000 1,722,386 5,046,792 6,936,792 $ 500,000 1,716,574 5,040,980 7,028,980

Answer 1

I had use Indirect method & the cash flow is divide into 3 parts, Operating, Financing & Investing
Build the estatemes Indirect method statement of cash flow using for 2019. Amt Amt - Particular Net operating activities Net Income ADD = J Depreciation 1) Accounts payable ii) increase in interest payable llil increase in shortterm payable so increase in Deffered revenue. o increase in payable Dioidend |(372,046) 536500 527638 864 225000 1534135 1458600 vil increase in Bond interest Payable igodo. vij) Decrease in Inventory 1267150 - A - 323, 248,867 Less i Decrease in wages payables (7500) i Increase in marketable securities (134000). Wincrease in Account Recenables (1210625) i Increase in Interest Receivables (G8199)! o prepared Increase in prepaid Advertising (13,333) (322949) oi in insurance Beincrease (36117) increase in prepaid Rent (6680) vill increase in office supplies (1778998 1970369 From operating activities Revenue

Dale I activities Revenue From Investing Puronase of furniture sale of cauipment Tale of land. Parchase of patent? Revenue from Investing (230000] 9600DD GOO DOO (158125) 1o) activities 1871875 o Financing activities increase in common shares Additional paid in Capital Treasury stock 700oo. aggooo (5950ool 1969000 Revenue From financing activities Total cash flow (+) to opening Balance of cash one I closing Balance of cash and 2529065 525710 306977