Question

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 34,000 35, eee 41,000 121.000 (30.000) $281,000 $ 36,000 1, 2ee 38, eee 88,600 37,200 $ 201,00 $ 29, eee 28,000 38,eee 100, eee (25,eee) $170,000 $ 27,000 1,400 44,eee 72,60e 25, eee $170, eee $120.ece ze.ece Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; salaries and wages, $20,000; taxes, $6,000; utilities, $6,800. f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash

Answer 1

Statement of cash flows
Cash flow from Operating Activities
Net Income		12200
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	5000
Increase in accounts receivable	-7000
Increase in inventory	-3000
Decrease in salaries and wages payable	-200
Increase in accounts payable	9000	3800
Cash inflow from operating activities		16000
Cash flow from investing activities
Purchase of equipment	-21000
Cash outflow from investing activities		-21000
Cash flow from financing activities
Paid notes payable	-6000
Common stock issued	16000
Cash inflow from financing activities		10000
Net cash inflows/ outflows		5000
Add: Cash at the beginning of the year		29000
Cash at the end of the year		34000