CASH FLOW STATEMENT (INDIRECT METHOD)
FOR THE YEAR OF 2019
Description | Amount ($) | Amount ($) |
Operating Activities: | ||
Net income | 1,242 | |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Add: Depreciation | 122 | |
(Increase) decrease in current assets: | ||
Increase in account receivable | (70) | |
Increase in Inventory | (26) | |
Increase (decrease) in current liabilities: | ||
Increase in account payable | 434 | |
Decrease in notes payable | (100) | |
Net cash provided by operating activities | 1,602 | |
Investing Activities: | ||
Purchase of fixed assets* | (239) | |
Net cash provided by Investing Activities | (239) | |
Financing Activities: | ||
Issued common stock ($2,100 - $1,900) | 200 | |
Payment of long term debt ($2,400 - $1,100) | (1,300) | |
Dividend paid * | (200) | |
Net cash provided by financing activities | (1,300) | |
Net increase in cash | 63 | |
Add: Cash (2018) | 250 | |
Cash (2019) | 313 | |
Working note:
Fixed assets (2018) | $4,006 |
Less: Depreciation | (122) |
3,884 | |
Fixed assets (ending) | (4,123) |
Purchase fixed assets ($4,123-$3,884) | 239 |
Statement of retained earning:
Retained earning (2018) | $1,826 |
Add: Net income (2019) | 1,242 |
Total | 3,068 |
Retained earning (2019) | (2,868) |
Dividend paid ($3,068-$2,868) | 200 |
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please do it asap and show the work! Using the information on the income statement and...