Question

Classifying Sources and Uses Classify each of the following items as a source (S) or a use (U) of founds or as neither (N). Change Item Change (5) -700 +100 - 1,000 Accounts Payable Notes Payable Long-term debt Inventory Fixed Assets Accounts receivable Net profits Depreciation Repurchase of stock Cash dividend Sale of stock +600 +100 +600 -2,000 +200 +400 +800 +1.000 Preparing a Statement of Cash Flows Given the balance sheets and selected data from the income statement of Keith Corporation: a)Prepare the firm's statement of cash flows for the vear ended December 31, 2017. (Steps 1, 2 y 3) Balance Sheets Keith Corporation Assets December 31 2016 2017 Marketable securities Account receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets $ 1.000 1,200 1.800 $ 2,800 $ 6.000 $ 1,500 1,800 2.000 $ 2,900 $ 8,200 29,500 $ 14,700 $ 14,800 $ 23,000 28,100 $ 13,100 $ 15,000 $21,800 Total assets samak $ 1.500 2,200 Liabilities and Stockholders' Equity Accounts payable $ 1,600 Notes payable 2,800 Accruals 200 Total current abilities $4,600 Long-term debt $ 5,000 Common stock $ 10,000 Retained earning 3.400 Total stockholders' equity $ 13,400 Total liabilities and stockholders' equity $ 23,000 $ 4,000 $ 5,000 $10,000 2,800 $ 12,800 $21,800 Income Statement date (2017) Depreciation expense $ 1,600 1,400 Net profit after taxes

Answer 1

The above question represents Cash flow statement . Please see below 3 stage of Cash flow Statement with Balance Sheet item movement ( Yr 2017-16 ) and impact on Cash Flow Statement

Cash flow - Keith Corporation				Balance Sheet
		Year -2017		Year 2017	Year 2016	Movement
		Amount ( $)		Amount ( $)	Amount ( $)
Net Profit after tax		1,400
Add: Non Cash item
Depreciation		1,600
Change in Working Capital
Movement( Increase ) of Marketable Securities		-600		1,800	1,200	600
Movement( Increase ) of Account Receivable		-200		2,000	1,800	200
Movement( Increase ) of Inventories		-100		2,900	2,800	100
Movement( Increase ) of Account Payable		100		1,600	1,500	100
Movement( Increase ) of Note Payable		600		2,800	2,200	600
Movement( Decrease ) ofAccrual		-100		200	300	-100
Cash flow from Operation activity		2,700
Cash flow from Investment Activity
Purchase of Fixed asset		-1,400		29,500	28,100	1,400
Cash flow from Investment Activity		-1,400
Cash flow from Financing Activity- Dividend paid		-800
Cash and Cash Equivalent Balance		500		-
Opening Cash Balance -Year 2016		1,000
Closing Cash Balance-Year 2017		1,500