Question

MNP Inc. have gathered together the following data from the accounting records: Payments of non-current debt$220,000 Collections on accounts receivable215,600 Acquisition of equipment by issuing non-current y note payable90,000 interest revenue 15,600 Credit sales350,600 Loan collections48,200 Proceeds from sale of investments, not including $4,200 gain38,200 Salary expense 105,700 Cash payments to purchase capital assets72,000 Cost of goods sold425,000 Collection of interest revenue 15,500 Payment of cash dividends36,200 Income tax expense and payments41,500 Proceeds from sale of capital assets, not including $7,200 loss32,500 Cash receipt of dividend revenue20,200 Payment of salaries95,600 Depreciation expense72,500 Cash sales208,000 Proceeds from issuance of common shares350,000 Loan to another company50,000 Interest expense and payments61,000 Bonds payable converted into common shares250,000 Payments to suppliers285,000 Cash balance: December 31, 201655,500 Cash balance: December 31, 2017122,400 Prepare the cash flow statement for the year ended December 31, 2017 using the direct method under ASPE and including a schedule of noncash investing and financing activities, if necessary.

Answer 1

Statement of Cash Flow of MNP Inc. for the year ended December 31,2017 using Direct Method
A	Cash Flow from Operating Activities	Amount
	Cash Sales	$208,000
	Cash Received from customers	$215,600
	Payment of salaries	($95,600)
	Payment to supplier	($285,000)
	Interest expense and payments	($61,000)
	Cash generated from operation	($18,000)
	Income tax expense and payments	($41,500)
	Net Cash generated from operation	($59,500)
B	Cash Flow from Investing Activities
	Proceeds from sale of investments	$38,200
	Cash payment to purchase capital assets	($72,000)
	Loan Collection	$48,200
	Collection of interest revenue	$15,500
	Proceeds from sale of capital assets	$32,500
	Cash receipt of dividend revenue	$20,200
	Loan to another company	($50,000)
	Net Cash generated from investing activities	$32,600
C	Cash flow from Financing Activities
	Payment of non current debt	($220,000)
	Payment of Cash dividend	($36,200)
	Proceeds fom issuance of common shares	$350,000
	Net Cash generated from financing activities	$93,800
	Net Increase in Cash	$66,900
	Opening Cash & Cash Equivalent	$55,500
	Closing Cash & Cash Equivalent	$122,400
Note-1	Acquisition of equipment by issuing non current note payable $90,000 is a non cash investing activity.
Note-2	Bond payable converted into common shares of $ 250,000 is a non cash financing activity.