Question

CCT 250v8: Accounting for Managers Kirsten uiz: Quiz 9A mis Question: 1 pt 4 of 25 The following data are from the fnancial statements of Styles inc. for the fiscal year ended March 1, 2014 ini Click the icon to view the information) Required 1. Prepare a meno canh tows for the fiscal year ended March 1, 2014. Not all items given are reported in the statement of cash flows. 2. What was the largest source of cash is this a sign of financial reghor was? Requirement 1. Prophetament of cash fous for the fiscal year ended March 1, 2014. Start by entering the information for the operating activities. (Use a minus sign or parentheses to show cash Stylesine Statement of Cash Flows More info For the Year Ended March 1, 2014 Mion 150 Cach ostroperinge Purchase of capital and others Accountaronable con term diete 178 Cash Beginning Repurchase of common share Payude Adjustments to concert income owl Common shares 765 Casos troming Bales of capital assets and other assets Can beginning of your 10 Cash and year Nepayment for det 30 4:30 7 0 Doe Choose from your in the input field and then continue to the MacBook Air 10 5 . 2 A 6 7 8 9 1 0 W E R т Y U 0 P A А. . S D F G I slock K L N > х C > B N M 946 * trol option command Command OC

Answer 1

Ans a.

Cash Flow from Operating Activities
Net Income /(Loss)	(254)
Adjustments to reconcile net Income/(Loss) to cash provided by operations	420
Total Cash flow from Operating Activities		166
Cash flow from Investing Activities
Cash outflow from purchase of Capital Assets	(158)
Sales of Capital Assets & Other Assets	7
Total Cash flow from Investing Activities		(151)
Cash flow from Financing Activities
Cash from Issuance of LT Debt	178
Repurchase of Common Shares	(172)
Payment of Dividends	(32)
Cash from Issuance of common shares	5
Cash out for repayment of LT debt	(4)
Total Cash flow from Financing Activities		(25)
Net Cash flow from Operating, Investing & Financing Activities during the Year		(10)
Cash Balance at the start of the year		10
Net Cash flow from Operating, Investing & Financing Activities during the Year		(10)
Cash Balance at the end of the year		0

Ans b.

Larget source of cash is the adjustment to Net Income/(loss) from non cash charges like depreciation and amortization and working capital related adjsutments like decrease in Accounts Receivable and Inventory and increase in Accounts Payable and Accrued Liabilities. This indicates that the working capital elements have been utilized efficiently to generate positive cash flow , so it is a sign of strength of the company.