Question

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Item Prior year Current year Accounts payable 8,200.00 7,931.00 Accounts receivable 6,029.00 6,738.00 Accruals 981.00 1,572.00 Cash ??? ??? Common Stock 10,600.00 11,962.00 COGS 12,606.00 18,006.00 Current portion long-term debt 5,030.00 5,045.00 Depreciation expense 2,500 2,810.00 Interest expense 733 417 Inventories 4,169.00 4,821.00 Long-term debt 14,570.00 13,569.00 Net fixed assets 50,353.00 54,087.00 Notes payable 4,366.00 9,930.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,987.00 29,850.00 Sales 35,119 46,742.00 Tool - anche se

Answer 1

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Cashflow from operating activities is= Net Income+ Noncash expenses+ Changes in Current Assets and Liabilities.
Workings	Current Year		Cash flow from Operations	Current Year
Net Income			Particulars	Amount $	Amount $
Sales	46,742.00		Net Income		4,562.00
Less: COGS	18,006.00		Add:
Gross Income	28,736.00		Non cash expenses
Less: Operating Expense			Depreciation Expense		2,810.00
Depreciation expense	2,810.00		Changes in Current Assets/Current Liabilities
Operating Expense	18,172.00		Increase in Accounts Receivable	(709.00)
Operating Income	7,754.00		Increase in Inventory	(652.00)
Interest Expense	417.00		Decrease in Accounts Payable	(269.00)
Income before tax	7,337.00		Increase in Accruals	591.00	(1,039.00)
Taxes	2,775.00		Cash flow from Operations		6,333.00
Net Income	4,562.00
Changes in Current Assets and Liabilities	Current Year
Increase in Accounts Receivable
Closing Balance	6,738.00
Less: Opening Balance	6,029.00
Increase in Accounts Receivable	709.00
Increase in Inventory
Closing Balance	4,821.00
Less: Opening Balance	4,169.00
Increase in Inventory	652.00
Decrease in Accounts Payable
Closing Balance	7,931.00
Less: Opening Balance	8,200.00
Decrease in Accounts Payable	(269.00)
Increase in Accruals
Closing Balance	1,572.00
Less: Opening Balance	981.00
Increase in Accruals	591.00