Question

Having a hard time with this one. Can someone please help with this statement of cash flows?

WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense Changes in current assets and current liabilites: Accounts Receivable Inventories Salaries and Wages Payable Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Additions to Property, Plant, and Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities: Proceeds from issuance of Stock Payment of cash dividends Payments on long-term debt Net Cash Used in Financing Activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures:

Answer 1

$74,520 WICKERSHAM BROTHERS, Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flow from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $25,480 Increase in Accounts Receivable $ 16,000 Decrease in Merchandise Inventory $8,000 Decrease in Accounts Payable $3,200 Increase in Salaries & Wages payable $1,600 [Non-cash expense and so added back] ($112000 - $128000; Working capital is increased and so negative] ($104000 - $96000; Working capital is decreased and so positive] ($16000 - $19200; Working capital is increased and so negative] [$3200 - $1600 Working capital is decreased and so positive] $15,880 $90,400 Net Cash provided by operating activities Cash Flow from Investing Activities: Cash paid to purchase equipment Net Cash used in investing activities $86,000 $86,000

$20,000 $16,000 $27,300 Cash Flow from Financing Activities: Cash realized from new common stock Cash used to retire long-term note payable Cash dividends paid during the year Net Cash used in financing activities Net Decrease in cash balance during the year Add: Beginning cash balance Ending Cash Balance $23,300 $18,900 $118,800 $99,900 Supplemental Disclosures: No non-cash investing and financing activities were carried out during the year.