Question

Problem 3-37 Income versus Cash Flows (L03) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $5,700 1,600 430 350 int 500 120 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assetat Long-term debt Notes payable Dividends paid Cash and marketable securities 2019 $5,800 1,700 450 40S 550 120 940 335 490 6.490 4.300 490 ences 920 260 450 5,800 3,000 820 350 2,320 350 370 * Taxes are paid in their entirety in the year that the tax obligation is incurred. Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct a statement of cash flows for Fincorp for 2019. (Enter your answers in thousands of dollars. Negative amounts should be Indicated by a minus sign.) Fincorp Inc. Statement of Cash Flows (5 in 000) Cash flows from operations Noncash expenses

Answer 1

$ 2040 Fincorp Inc. Cash Flow Statement(Indirect Method) (in 000s) Account Cash Flows from Operating Activities $ Net Income Non Cash expenses Depreciation Change in Working Capital Increase in Account payable 75 Increase in Account Receivable -40 Increase in Inventory -55 Total Change in Working Capital Net Cash provided by Operating Activities 450 -20 2470

-1,140 -1,140 Cash flows from Investing Activities Cash Purchase of Net Fixed assets Net Cash used for Investing Activities Cash flows from Financing Activities Issue of long term Debt Repayment of notes payable Payment od dividend Net Cash provided from financing Activities Net Increase in Cash Cash at the beginning of 2019 Cash at the end of 2019 1300 -330 -350 620 1,950 370 2,320

5800 -1700 4100 Statement of income for 2019 Net Income Less Cost of Goods sold Gross profit less operating expenses Depreciation 450 Administrative expenses 550 Interest expenses 120 Federal and state taxes 940 Total operating expenses Net Income -2060 2040

Purchase of Net fixed assets

450) Fixed Assets Beginning Balance 5800 Depreciation Purchase(Balancing figure) 1140|Closing Balan Total 6940 Total 6490 6940