Question

Cash Flow Statement Amount Calculations - Chapter 14 End of year Beginning of year Current year Income statement Balance sheet Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment, at cost Less: Accum. depreciation Net equipment Total assets 86,000 112,000 141,000 18,000 357,000 298,000 (100,000) 198,000 555,000 54,000 126,000 120,000 21,000 321,000 240,000 (76,000) 164,000 485.000 Change 32,000 (14,000) 21,000 (3,000) 36,000 58,000 (24,000) 34,000 70,000 800,000 (600,000) 200,000 (130,000) 70,000 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income & (expense): Interest expense Interest income Gain on sale of equipment Total other expense Income before taxes Income tax expense Net income (7,500) 2,000 4,500 (1,000) 69,000 (20,000) 49,000 Accounts payable Interest payable Dividends payable Total current liabilities Long-term debt Total liabilities Common stock Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and equity 89,000 5,000 4,000 98,000 225,000 323,000 75,000 100,000 57 000 232,000 555,000 71,000 7,000 7,000 85,000 260,000 345,000 50,000 70,000 20 000 140,000 485,000 18,000 (2,000) (3,000) 13,000 (35,000) (22,000) 25,000 30,000 37 000 92,000 70.000

Please provided formulas/equations so i know how to solve for. thank you!

Answer 1

Cashflow statement	Amount $	Amount $
Particulars
Net Income		49,000.00
Adjustment to reconcile Net Income to Net Cash
Add:
Depreciation & Amortization Expense		24,000.00
Less:
Gain on sale of equipment		4,500.00
Cash flow from Operations		68,500.00
Changes in Current Assets/Current Liabilities
Decrease in Accounts Receivable	14,000.00
Increase in Inventory	(21,000.00)
Decrease in Prepaid Assets	3,000.00
Increase in Accounts Payable	18,000.00
Decrease in Interest Payable	(2,000.00)
Decrease in Dividend Payable	(3,000.00)	9,000.00
Net cash provided by operating activities		77,500.00
Cash flow from investing activities
Equipment purchased	(58,000.00)
Equipment sold	4,500.00
Net cash used for investing activities		(53,500.00)
Cash flow from financing activities
Long Term Debt paid	(35,000.00)
Common stock issued during the year	55,000.00
Dividends paid	(12,000.00)
Net cash provided by (Used for) financing activities		8,000.00
Net Increase/(Decrease) in cash		32,000.00
Cash Balance, beginning		54,000.00
Cash Balance, ending		86,000.00

Workings	Amount $
Common stock issued during the year
Change in Common stock	25,000.00
Add: Change in additional paid in capital	30,000.00
Common stock issued during the year	55,000.00
Dividend paid during the year
Retained Earnings- Opening	20,000.00
Add: Net Income	49,000.00
Less: Retained Earnings- Closing	57,000.00
Dividend paid during the year	12,000.00

Free Cash Flow=	EBIT - Taxes + Depreciation & Amortization - Capex – Change in Working Capital
EBIT	Amount $
Income from operations	70,000.00
Add: Interest income	2,000.00
Add: Gain on sale of equipment	4,500.00
EBIT	76,500.00
Calculation of changes in working capital	End	Beginning
Total current assets	357,000.00	321,000.00
Total current Liabilities	98,000.00	85,000.00
Working capital	259,000.00	236,000.00
Changes in working capital	23,000.00
Free Cash Flow	Amount $
EBIT	76,500.00
Less: Taxes	20,000.00
Add: Depreciation & Amortization	24,000.00
Less: Equipment purchased	58,000.00
Less: Changes in working capital	23,000.00
Free Cash Flow	(500.00)