Can you please make a statement of cash flow from Balance Sheets and additional
ID: 2421792 • Letter: C
Question
Can you please make a statement of cash flow from Balance Sheets and additional information above?
Identify each activity as (1) an operating activity , (2) an investing activity, (3) none of the above. Equipment costing $20,000, depreciated to one half its cost, was sold for $8,000. Common stock, purchased as a long-term investment for $5,000, was sold for $8,000 Dividends declared during 20X2 totaled $50,000. Equipment costing $145,000 was purchased during 20X2. Depreciation expense for 20X2 totaled 30,000. Long-term debt of $55,000 was reclassified as current at the end of 20X2. Common stock of $100,000 was sold during 20X2. Shore Motel generated net income of $27,000 during 20X2. Prepare the cash from financing activities section of the SCF.Explanation / Answer
Cash Flow Statement Cash flows from operating activities Net Income 27,000.00 Adjustments for: Depreciation 30,000.00 Loss on sale of equipment 2,000.00 Gain on sale of investment (3,000.00) Working capital changes: (Increase) / Decrease in trade and other receivables 1,000.00 (Increase) / Decreasein inventories - Increase / (Decrease) in trade payables 3,000.00 Cash generated from operations 60,000.00 Net cash from operating activities 60,000.00 Cash flows from investing activities Purchase of property, plant and equipment -145000 Proceeds from sale of investment 8000 Proceeds from sale of equipment 8,000.00 Purchase of Investment (10,000.00) Net cash used in investing activities (139,000.00) Cash flows from financing activities Issue of stock 100000 Payment of dividend -50000 Borrowings of Note 40000 Net cash used in financing activities 90,000.00 Net increase in cash and cash equivalents 11,000.00 Cash and cash equivalents at beginning of period 10,000.00 Cash and cash equivalents at end of period 6,000.00