Question

The financial statements of Pouchie Co. included the following information for the year ended December 31, 2019 (amounts in millions) $258 318 816 378 143 171 Depreciation and amortization expense Cash dividends declared and paid Purchase of equipment Net income Beginning cash balance Proceeds of common stock issued Proceeds from sale of building (at book value) Accounts receivable increase Ending cash balance Inventory decrease Accounts payable increase Required: Complete the following statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated by a minus sign. Enter your answers in millions (i.e., 5,000,000 should be entered os 5).)

Answer 1

Statement of Cash flow

Cash flow from operating activities
Net income	378
Adjustment to reconcile net income to net cash provided by operating activities
Depreciation and amortization	258
Increase account receivable	-16
Inventory decrease	24
Account payable increase	49
Net cash provided by operating activities		693
Cash flow from investing activities
Purchase of equipment	-816
Proceeds from sale of building	194
Net cash used in investing activities		-622
Cash flow from financing activities
Issue common Stock	171
Cash dividend paid	-318
Net cash used in financing activities		-147
Net cash increase (decrease)		-76
Cash balance January 1,2019		143
Cash balance, December 31,2019		67