Question

Acct 2301

QUESTION QUESTION 2,732 500 70,700 306 200 Total expens

Answer 1

We solve this question Step by Step First we determine the changes in current assets and current liabilities (Ending bal -Beginning bal Note 1 :- When current assets are increase then cash flows are decrease and current assets are decrease then cashflow is increase When current liabilities are increase then cash flows are increase and current liabilites are decrease then cashflow is decrease Current Assets and current liabilities increase/ decrease show - Cash flow from operating Activities Current Assets Net Accounts receivable Cash Flow stat ement-Inirect Method Step-1 For the year ended December 31, 2016 Particulars Cash flow from Operating Activity Adjustments to reconcile net income to Net Profit 316,300.00 Current liabilities Account Payable Depreciation on Fixed assets Gain on Sale of land 24,000.00 (2,500.00 $78,000 Beginning balane$100,000 Ending Balance$34,000 Less Beginning balance 94,000 Ending Balance Less operating profit before working capital changes 337,800 0 Decrease Net Accounts receivable Increase Invento Decrease Prepaid Rent Decrease 22,000.00 8,000.00 1,900.00 Invent terest Payable Ending Balance$146,000 138,000 Ending Balance$4,800 Less- Beginning balance$2,500 Decrease Account Payable Increase interest Payable Decrease Income Tax Payable cash generation from Oprating Activity 60,000.00 2,300.00 (9,000.00) Less: Beginning balance Increase 287,000.00 287,000.00 Income Tax Payable Cash flow from investing activities Sale of Land Prepaid Rent Ending Balance LessBeginning balance Ending Balance $21,000 LessBeginning balance $30,000 56,500.00 Decrease $1,900 Decrease $9 Purchase of Investment Cash generation from investing Activities Cash flow fron Financing activities (49,000.00) 7,500.00 7,500.00 Determine investing Activies purchase and sale of Assets and investment Fixed assets and investment increase in current year means these are increase due to Purchase Fixed assets and investment decrease in current year means these aredecrease due to Sold or Depreciaton Fixed Assets and Investment purchase as negative & Sale as positive show - Cash flow from operating Activities Step 2 Issue of common stock Dividend Paid 54,000.00 150,000.00 h generation from financing Activities Net Increase in cash and cash equivalent Beginning Cash Balance Ending Cash Balance 96,000.00 198,500.00 148,000.00 346,500.00 ancing Activities Borrowing longterm liabilitiesIncrease in Cash flow Repayment of longterm liabilities Decrease in Cash flow Issue Capital (common/ Pref) Redemption Capital ( common/ Pref) Decrease in Cash flow Dividend paid Increase in Cash flow Decrease in Cash flow