Question

PDg Income Statement Gnded pec 2016 for the year Cosenses Sales Iovestment reenue Gan on Bale 4 B00 eafament 51 Capenses Cost gonds sold SS on 120 Zale Salanes exp Aepr oxp Bad debts oxp Crteat anort exp Intexest exp Insurance exp Jocome tar exp 25 25 262 30 Net ocome 53 Acletional hpmatin Equipnent shich cast 430 and w0s 2 depreciatedw Lold for $15. 2Equipment cashing 15 uns acquihed under a capital lease 2 $15 oh new bohds wese fssued at 4.hareholders were paid ash didends heceived stock didends valued at s10 5 20 shares o heasury Stock were reissued at a cost 6.$5 par valuě commn tock was sold tes $ lo. 1 No lond, buildings value bace $24 and Long.term ovestwments were Ldd equity methad nvelee Povestment hevenue as tromo &.$10 9. Theasiny bills wee sold duning 2014 at a fss PDo assies ts Paeabnents Thcasug ils as Cash oquialenk

Indirect method?

Indirect method Statement of Cash flow for year ended December 31, 2016

Answer 1

$53 $25 CASH FLOW FROM OPERATING ACTIVITIES: Net Income Adjustments to reconcile net income to net cash: Depreciation (non cash expense) Profit on sale of Equipment (Increase) Decrease in Current Assets: Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid expense Increase (Decrease) in Current Liabilities: Decrease in Accounts Payable NET CASH PROVIDED BY OPERATING ACTIVITIES (334) $34 CASH FLOW FROM INVESTING ACTIVITIES: Cash flow from sale of Plant Invetment in equipment LT investments Land $20 ($15) ($10) NET CASH USED IN INVESTING ACTIVITIES ($5 CASH FLOWS FROM FINANCING ACTIVITIES Cash flow fromissue of common stock at par Cash flow from sale of common stock Decrease in patents Change in income tax payable $20 $21 ($2) ($9) $32 NET CASH USED IN FINANCING ACTIVITIES Net Cash FLOW Opening Cash Balance in 2016 Closing Cash Balance in 2016 362 $19 $25 $44