Question

What is the cash flow from operating activity in 2019? Freeman Inc. reported the following financial statements for the last two years. Freeman, INC 2019 Income statement Sales Cost of goods sold Selling and administrative Depreciation 809,200 323,110 153,400 96,343 EBIT Interest 236,347.00 53,220 ЕВТ Taxes Net Income Dividends Addition to retained earnings 183,127.00 36,625 2 ? 128,302 Freeman, INC Balance Sheet as of December 31 2019 2018 Cash 16,302 Account receivables 16,849 Inventory 23,875 57,026 415,289 472,315 Current assets Net fixed asset Total assets 2019 18,143 19,527 28,614 66,284 498,312 564,596 Account payable Long-term deb Owner's equis Total liability and ownetts equity 29,342 165,300 ? 32,978 179,400 ? 472,315 564,596

Answer 1

Income statement Cash flow from operating activities = (236347-2678 -4739 + 3636 +96343-36625) 292,284.00 Sales Cost of goods sold Selling and administrative depreciation EBIT Interest EBT Taxes Net income Dividends Addition to the retained earning 809,200.00 323, 110.00 153,400.00 96,343.00 236,347.00 53,220.00 183,127.00 36,625.00 146,502.00 (EBT - taxes) 18,200.00 (Net income - addition to retained earnings) 128,302.00 Cash Accounts receivable Inventory Current assets Net Fixed asset Total asset 2018 2019 Increase/decrease 16,302.00 18,143.00 16,849.00 19,527.00 2,678.00 Increase in current asset is subtracted and increase in current liabilities is added to Cash flow from operation 23,875.00 28,614.00 4,739.00 57,026.00 66,284.00 415,289.00 498,312.00 472,315.00 564,596.00 3,636.00 Accounts payable Long term debt Owners equity Total liability and owners equity 29,342.00 165,300.00 277,673.00 472,315.00 32,978.00 179,400.00 352,218.00 564,596.00 owners equity = Total liability and equity - accounts payable-long term debt