Question

VIULD DO THIS UNE core: 0 of 1 pt 1 of 2 (0 complete) 14-34A (book/static) The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow (Click the icon to view the income statement.) Click the icon to view the comparative balance sheet.) (Click the icon to view the additional information) Read the requirements Complete the statement one section at a time, beginning with the cash flows from operating activities Rolling Hills, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining esc

Answer 1

96,400.00 ROLLING HILLS, INC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31, DEC2018 Cash flow from operating Activities NET INCOME Add :- Income tax expenses 20,000.00 depreciation expenses 14,400.00 Interest expenses 21,100.00 Less :- Interest Income 8,700.00 55,500.00 8,700.00 143,200.00 cash flow from operation before adjustment and tax Working capital adjustment increase in receivales Increase in payables Decrease in accrued liabilities Decrease in inventory (1,100.00) 5,300.00 (1,600.00) 11,700.00 14,300.00 Cash flow from operating before tax Less : Income tax paid Cash flow from operating activity 157,500.00 (20,000.00) 137,500.00

AMOUNTS ROLLING HILLS, INC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31, DEC2018 PARTICULARS AMOUNT $ Cash flow from investing Activities Purchase of land (21,100.00) purchase of Plant assets (23,600.00) Interest received from investment 8,700.00 Cash flow from investing Activities (36,000.00) Cash flow from financing Activities issue of shares notes payable paid Dividend paid Interest expenses 24,400.00 (29,000.00) (64,600.00) (21,100.00) Cash flow from financing Activities Increase/Decrease in cash during the period (90,300.00) 11,200.00 Cash at bank at the beginning of the year 15,700.00 Cash at bank at closing of the year 26,900.00

DR DATE PARTICULARS PLANT ASSETS (BAL. Fig) ACCUMULATED DEPRECIATION A/C AMOUNT IN $ DATE PARTICULARS 13,410.00 OPENING DEPRECIATION CR AMOUNT IN$ 17,950.00 14,400.00 BALANCE C/D 18,940.00 32,350.00 32,350.00 DR CR DATE PARTICULARS OPENING CASH PLANT ASSETS AMOUNT IN $ DATE 114,650.00 23,600.00 PARTICULARS ACCUMULATED DEPRECIATION AMOUNT IN SI 13,410.00 BALANCE C/D 124,840.00 138,250.00 138,250.00

DR CR LAND AMOUNT IN $ DATE PARTICULARS 14,000.00 21,100.00 DATE PARTICULARS OPENING CASH AMOUNT IN$ BALANCE C/D 35,100.00 35,100.00 35,100.00 DR DATE PARTICULARS DIVIDEND PAID RETAINED EARNINGS CR AMOUNT IN $ DATE PARTICULARS AMOUNT IN S 64,600.00 OPENING 10,100.00 INCOME STATEMENT 96,400.00 (NET INCOME) BALANCE C/D 41,900.00 106,500.00 106,500.00

ANSWER TO QUESTION (2)

CASH FLOW STATEMENT EXPLAINS US ABOUT HOW THE FUNDS OF THE BUSINESS HAS USED AND RAISED DURING PARTICULAR FINANCIAL PERIOD IT DEPICTS THE MOVEMENT OF CASH FROM BEGINNING OF THE YEAR TO THE END OF FINANCIAL YEAR IT HAS CLASSIFIED THE MOVEMENT OF CASH IN THREE WAYS - SAY OPERATING ACTIVITY, INVESTMENT ACTIVITY AND FINANCING ACTIVITY ABOVE CLASSIFICATION OF CASH FLOWS WOULD HELP US TO KNOW HOW MUCH CASH FLOW HAS USED AND RECEIVED FROM EACH ACTIVITY.IE HOW MUCH INVESTMENT MADE AND INCOME RECEIVED, HOW MUCH INTERNAL AND EXTERNAL FUND RAISED AND THEIR REPAYMENT, HOW MUCH PAID SHAREHOLDERS OUT OF INCOME,HOW MUCH INCURRED FOR RAISING EXTERNAL FUND CASH NET INCOME WILL BE DEPICTED FROM NET OPERATING CASH FLOW AFTER ADJUSTING NON CASH ITEMS AND FUND BLOCKED THROUGH RECEIVABLES AND PAYABLES GIVING THE EFFECT INVENTORY IN CASH NET INCOME