5. Answer the following questions using the incomplete statement of cash flows for the Zany Company provided of pa...

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The Zany Company Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities Net income

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Answer 1

Answer #1

a) Ending Cash Balance = Opening Balance + Operating Cash Flow + Investing Cash Flow + Financing Cash Flow

57544 = Opening Balance + 186448 + -150000 + 7845 =

Opening Balance = 57544 - (186448 + -150000 + 7845 ) = 13251

b) Net Cash from Operating Activities = Net Income + Non Cash Items + Increase in Working Capital =

186,448 = Net Income + 21,227

Net Income = 186,448 - 21,227 = 165,221

c) Depreciation is a non cash expense for companies however we deduct it to get the Net Income. but there is not actual outflow of cash in depreciation so we add it back to get the cash from operating activities.

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