Question

$ Problem 6 ProLogis Inc: Income Statement for the Year Ending December 31, 2019 Revenue Cost of Goods Sold Salaries Depreciation Other Operating Expenses Other Revenue/Expenses: Gain on Sale of equipment Interest Expense Income Tax Expense Net income 23,598 11,456 4,123 1,052 3,577 205 246 1,139 2,210 $ ProLogis Inc: Comparative Balance Sheets: December 31, 2019 and 2018 2019 2018 Cash $ 1,011 $ 1,163 Accounts Receivable 1,012 957 Inventory 3,984 3,277 Prepaid Expenses 155 178 Total Current Assets 6,162 5,575 Land 510 510 Building 3,680 3,680 Equipment 8,798 8,555 Accumulated Depreciation - Equipment 3,443 2,891 Total Long Term Assets 9,545 9,854 Total Assets $ 15,707 $ 15,429 Accounts Payable $ 3,588 $ 3,325 Salaries Payable 85 Interest Payable 62 74 Income Tax Payable 50 Other Accrued Liabilities 1126 1104 Total Current Liabilities 4,916 $ 4,628 Long Term Debt 3075 3575 Common Stock 3750 4350 Retained Earnings 3966 2876 Total Liabilities and Equity $ 15,707 $ 15,429 During 2019, ProLogis purchased a new equipment for a total cost of $1,300. Other than dividends and net income, no other items impacted net income during 2019 75 55 Prepare the statement of cash flow for ProLogis as of the year ending December 31, 2019 using the direct method.

Answer 1

Prologis Inc.					Workings:
Statement of Cash Flows					Calculation :
For Year Ended December 31, 2019					Cash collected from customers
Cash flows from operating activities					Beginning AR	$957
Cash Inflow:					+ Sales	$23,598
From customers	23,543				- Ending AR	-$1,012
						$23,543
Cash Outflows:
To suppliers of goods	(11,900)				Purchase from suppliers
To employee	(4,113)				- Beginning Inventory	-$3,277
For operating expense	(3,532)				+ cost of goods sold	$11,456
For income taxes	(1,134)				+ Ending Inventory	$3,984
For interest expense	(258)					$12,163
Net cash provided by operating activities		2,606			Cash paid for suppliers
Cash flows from investing activities					Beginning AP	$3,325
Purchase of equipment	(1,300)				+ purchase from suppliers	$12,163
Sale of equipment	762				- Ending AP	-$3,588
						$11,900
Net cash used by investing activities		(538)
Cash flows from financing activities					Cash paid for salaries expenses:
Payment of dividends	(1,120)				+ Beginning salaries payable	$75
Payment of long-term debt	(500)				+ Salaries expenses	$4,123
Purchase of treasury stock	(600)				- Ending expenses payable	-$85
Net cash used by financing activities		(2,220)				$4,113
Net increase (decrease) in cash		(152)
Cash at the beginning of the year		1,163			Cash paid for operating expenses:
Cash at the end of the year		1,011			+ Beginning prepaid expense	-$178
					+ Operating expenses	$3,577
					- Ending prepaid expense	$155
					+ Beginning accrued liabilities	$1,104
					- Ending accrued liabilities	-$1,126
						$3,532
					Cash paid for Income expenses:
					+ Beginning Income tax payable	$50
					+ Income tax expenses	$1,139
					- Ending Income tax payable	-$55
						$1,134
					Cash paid for Interest expenses:
					+ Beginning interest payable	$74
					+ Bond interest expenses	$246
					- Ending interest payable	-$62
						$258