Question

Please make a statement of cash flows using the indirect method from the attached financial statements.
Ending Balance Beginning Balance Assets Current Assets: Cash & Cash Equivalents $ Accounts Receivable Inventory Total Current Assets Property, Plant & Equipment Less Accumulated Depreciation Net PPE Total Assets 65 $ 900 780 1,745 1,765 926 839 2,584 133 822 714 1,669 1,718 729 989 2,658 186 Liabilities & Equity Current Liabilities: Accounts Payable Accrued Liabilities Income Tax Payable Total Current Liabilities Bonds Payable Total Liabilities 312 206 129 647 545 1,192 144 98 428 860 1,288 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 275 1,117 1,392 2,584 275 1,095 1,370 2,658 1
Use Excel cell references and formula to make the statement of cash flow in the proper format, including free cash flow.

Answer 1

Statement of Cash Flows :

Two methods are used for prepare Cash Flow Statement. Direct Method And Indirect method.

Basically activities are divided into 3 parts: Operating Activities, Investing Activities and Financing Activities.

Particulars

Amount

cash flow from Opearting Activities Net income Increase in Retained Earnings(1095-1117) Accumulated Depreciation less: Profit on Sale Less: increase in Accounts Receivable (822-900) Less: Increase in Inventory (714-780) Add: Increase in Accounts Payable(186- 312) Add: Accured Liabilities (144- 206) Net cash flow from Operating Activities Income tax paid (98-129) Cash flow from Operating Activities Cash Flow from Investing Activities: sale of Equipment Purchase of Equipment Net cash used in investing activities Cash Flow from Financing Activities: Bond Redeemed (860-545) Common Stock (remain same) Net cash in Financing activities

326 22 230 (2) (78) (66) 126 62 620 ( 31) 589 33 (111) (78) (315) ------ (315)

Cash flow from all activities 589-78-315 Opening Cash Balance Closing Balance

196 (133) 63

                                                      Equipment account

Particulars	Amount$	particulars	Amount$
To balance b/d	64	By accumulated dep	33
To Profit and Loss a/c (balancing figure)	2	By cash(sale)	33

Particulars	Amount $	particulars	Amount $
To equipment	33	By balance B/d	729
To balance c/d	926	By Profit and loss a/c	230

Accumulated depreciation account