Question

You have the following selected information for your company. From the year ending December 31, 2019 Income Statement: Sales: $6,400 Depreciation Expense: $600 Net Income: $3,800 From the Balance Sheets, the following are changes between December 31, 2018 and December 31, 2019 (no change for any items not listed, except cash) Inventory Increased by $900 Accounts Payable Decreased by $500 There was $900 in capital expenditures and $400 in dividends paid in 2019 (but no other investing or financing activities). As of December 31, 2018, Cash was $2,300. Prepare the applicable (entire) Statement of Cash Flow (Indirect Method all proper formatting required!).

Answer 1

$ 3,800 Statement of Cash Flows For Year Ended December 31, 2019 Cash flow from operating activities: Net income Adjustments to reconcile net income to cash provided by operations: Depreciation Expense Increase in Inventory Decrease in accounts payable Net cash provided by operating activities (A) 600 $ $ $ -900 -500 $ 3,000 Cash flows from investing activities Caital Expenditure Net cash provided by investing activities (B) $ -400 $ -400 Cash flow from financing activities Cash paid for dividends Net cash provided by financing activities (C) $ -400 $ -400 Net increase (decrease) in cash (A+B+C) Cash balance at beginning of year Cash balance at end of year $ $ $ 2,200 2,300 4,500 Let me know, if you have any questions over comments section, rate positive if you are satisfied with the solution