Question

i need statement of cash flows please

Problem 2: (30 pts) Based on the following information, prepare the statement of cash flows using the indirect method. Smo Company Balance Sheet 2010 2009 Change Current assets: Cash Accounts receivable Inventory Interest Receivable Prepaid expenses Long-term assets Plant & equipment (net) Land $14,200 28,600 83,600 1,900 2,500 $5,300 26,900 87,200 700 1,900 $8,900 1,700 (3,600) 1,200 600 53,500 89.000 49,400 60,000 4,100 29,000 Total Assets 273,300 231,400 Current liabilities: Accounts payable Interest payable Other accruals Tax payable Salary payable Long-term liabilities Notes payable 31,400 4,400 13,700 8,900 3,100 28,800 4,900 16,000 7,700 6,600 2,600 (500) (2,300) 1,200 (3,500) 75,000 100,000 (25,000) Stockholder's equity Common stock (no par) Retained earnings 88,300 48.500 64,700 2.700 23,600 45,800 Total Liabilities and Equity 273,300 231,400 Revenues: Sales Interest Revenue Total Revenue Income Statement For the Year Ended December 31, 2010 $220,000 8.600 228,600 Expenses: Cost of goods sold Depreciation expense Salary expense Other operating expenses Interest expense Tax expense Total expense Net Income 70,600 4,000 27,800 10,500 11,600 29.100 153.600 75,000

Answer 1

Cash flow statement reflects the changes in cash during the year from operating, investing and financing activities
Cash flow statement is shown below
Smo Company
Statement of cash flows
For the year ended December 31, 2010
Cash flow from operating activities:
Net income	$75,000
Adjustments to reconcile net income to cash flow from operating activities
Depreciation	$4,000
Changes in current operating assets and liabilities
Increase in accounts receivable	-$1,700
Decrease in inventories	$3,600
Increase in interest receivable	-$1,200
Increase in prepaid expenses	-$600
Increase in accounts payable	$2,600
Decrease in interest payable	-$500
Decrease in other accruals	-$2,300
Increase in tax payable	$1,200
Decrease in salary payable	-$3,500
Net cash flow from operating activities		$76,600
Cash flows from (used for) investing activities
Cash used for purchase of Land	-$29,000
Cash used for purchase of plant and equipment (4000+4100)	-$8,100
Net cash flow from investing activities		-$37,100
Cash flows from (used for) financing activities
Cash used for paying notes payable	-$25,000
Cash from sale of common stock	$23,600
Cash used for dividends (75,000-45,800)	-$29,200
Net cash flow from financing activities		-$30,600
Increase in cash		$8,900
Cash at the beginning of the year		$5,300
Cash at end of the year		$14,200