Question

Complete the statement one section at a​ time, beginning with the cash flows from operating activities.

	Grand Tree, Inc.
	Statement of Cash Flows
	Year Ended December 31, 2018 Grand Tree, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 442,000 Cost of Goods Sold 210,200 Gross Profit 231,800 Operating Expenses Salaries Expense 78,400 Depreciation Expense-Plant Assets 14,700 Other Operating Expenses 11,000 104,100 Total Operating Expenses Operating Income 127.700 Other Income and (Expenses): Interest Revenue 8,300 Interest Expense (21,300) Total Other Income and (Expenses) (13.000) Net Income Before Income Taxes 114,700 Income Tax Expense 19,400 $ 95,300 Net Income

Answer 1

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Cash Flow Statement-Indirect Method
Year Ended Dec 31 2018
Cash flow from Operating Activities:		112000
Net Income	95300
Adjustments to Net Income:
Increase in Account Receivable	-1300
Increase in Inventories	11600
Increase in Accounts payables	4600
Decrease in Accured Liabilities	-2700
Less: Accu. Dep. Adjustment	-10200
Add: Depreciation Plant	14700
Cash flow from investing Activities:		-68500
Purchase of Plant (120640-108940)	-11700
Purchase of Land	-23800
Payment of Notes Payable	-33000
Loans to subsidiaries
Cash flow from financing Activities:		-32100
Proceeds from Common Stock	24300
Payments of Dividend	-56400
Cash flow during the year		11400
Add: Opening Balance of Cash		15400
Closing Balance of Cash		26800