Question

I was given this spreadsheet and told to create a statement of cash flows. I have been able to figure out the straight forward pieces but am hung up on the PPE and APIC. Please help someone!!!! I tried to do this by myself for as long as I could! I can work backwards to understand how this works.

	Now	Before
Cash	$          39,274	$          65,000	$ (25,726)
AR	$          69,325	$          54,125	$   15,200
Inventory	$       270,406	$       244,800	$   25,606
Prepaid	$            1,320	$            1,750	$       (430)
PPE	$       148,150	$       106,000	$   42,150
Acc Dep	$        (39,100)	$        (46,000)	$     6,900
Total Assets	$       489,375	$       425,675	$   63,700
AP	$          59,475	$       109,100	$ (49,625)
ST Notes payable	$            7,200	$            4,600	$     2,600
LT Notes payable	$          34,875	$          36,000	$    (1,125)
Common Stock $5 par	$       157,000	$       146,500	$   10,500
APIC	$          31,500	$                  -	$   31,500
Retained Earnings	$       199,325	$       129,475	$   69,850
Total L +E	$       489,375	$       425,675	$   63,700
Sales	$       600,000
COGS	$       292,000
Gross Profit	$       308,000
Depreciation Expense	$          18,600
Other Op Expenses	$       140,500
	$       148,900
Loss on sale of PPE	$          (4,150)	** $10,350 Cash for PPE @ historical cost of $40,000
EBT	$       144,750
Income Tax Expense	$          27,500
Net Income	$       117,250

Answer 1

	CASH FLOW STATEMENT
A	Cash flows from operating activities
	Net income	$117,250
	Adjustments for non-cash effects:
	Depreciation expense	$18,600
	Loss from sale of equipment	$4,150
	Adjustments to reconcile net income cash
	Increase in Account receivable	-$15,200
	Increase in merchandise inventory	-$25,606
	decrease in prepaid insurance	$430
	Decrease in Account payable	-$49,625
	Increase in ST note payable	$2,600				PPE A/c(Net) refer workings-1
					Beg. Bal.	$60,000	Cash	10350
	Net cash inflow from operating activities	$52,599					Loss on sale	4150
							Depreciation	18600
B	Cash flows from investing activities				Cash	$82,150	end. Bal	$109,050
	Purchase of equipment	-$82,150	Refer workings -1			142150		142150
	Sale of equipment	$10,350	Refer workings -1
	Net cash ouflow from investing	-$71,800
C	Cash flows from financing activities
	LT Note redeemed	-$1,125
	Common stock issued	$42,000	(10500+31500)
	Dividend paid	-$47,400	(199325-129475-117250)
	Net cash inflow from financing activities	-$6,525
	Net decrease in cash $	-$25,726
	Cash at beginning of year	$65,000
	Cash at end of year	$39,274

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