Question

Finance 313 - Handout #28 Cash Flow Statement #2 Prepare the 2017 Statement of Cash Flows for Sampson Company. No dividends were paid in 2018. Balance Sheet Years Ending December 31, 2018 and 2017 12/31/18 S 35,000 72,185 98,000 12/31/32 $ 60,000 65,000 85,000 Cash Net Receivables Inventory Gross Plant & Equipment Less Accum. Deprec. Net Fixed Assets Total Assets 195,000 45,000 180,000 35,000 150,000 $355,185 145,000 $355.000 $ 80,000 61,000 Accounts Payable Accruals Mortgage Payable Common Stock Retained Earnings Total Liabilities & Equity $ 82,000 34,000 21,000 177,000 41,185 $ 358,185 174,000 40,000 $355,000 Income Statement for 2018 Net Sales Cost of Sales Gross Profit General Expenses Operating Profit Interest Expense Taxable income Tax Liability (218) Net Income $145,000 104,000 $ 41,000 36,000 $ 5,000 3,500 $ 1,500 315 $ 1,185

Answer 1

Statement of cash flows for Sampson Company Formula $ 1,185.0 $45,000-$35,000 10,000.0 (45,185.0) Cash flows from operating activities: Net income for 2018 Add: Non-cash depreciation (calculated as Accumulated depreciation 2018 less Accumulated depreciation 2017), Working capital changes: Add: Increase in Accounts payable Less: Increase in Net Receivables Less: Increase in Inventory Less: Decrease in Accruals Total Cash flows from operating activities (A) Cash flows from investing activities: Capital expenditures (calculated as Gross fixed assets 2018 less Gross fixed assets 2017) Total Cash flows from investing activities (B) Cash flows from financing activities: Increase in Mortgage payable Increase in Common Stock Total Cash flows from investing activities (C) $82,000-$80,000 $65,000-$72,185 $85,000-$98,000 $34,000-$61,000 2,000.0 (7,185.0) (13,000.0) (27,000.0) (34,000.0) $180,000-$195,000 (15,000.0) (15,000.0) $21,000-$0 $177,000-$174,000 21,000.0 3,000.0 24,000.0 (25,000.0) 60,000.0 Total Cash flows for the year [(A)+(B)+(C)] Opening cash balance for the year 2018 Equal to closing cash of 2017 Opening cash flow + Total cash flow for the year Closing cash balance for the year 2018 35,000.0