Prepare a statement of cash flows for the year 2014. E5 - 15 (preparation of a S

Question

Prepare a statement of cash flows for the year 2014. E5 - 15 (preparation of a Statement of Cash Flows) Presented below is condensed version of the com purgative balance sheets for Zubin Mehta Corporation for the last two years at December 31. Additional information: Investments were sold at a loss (not extraordinary) of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000. Instructions Prepare a statement of cash flows for 2014 for Zubin Mehta Corporation. Determine Zubin Mehta Corporation's free cash flow.

Explanation / Answer

Statement of Cash flows Particulars Amount Total Amount Opening cash and cash equivalents             78,000.00 Income             160,000.00 Loss on sale of invt                10,000.00 Depreciation                17,000.00 Decrease in AR                  5,000.00 Decrease in CL             (17,000.00) Cash flow from operating activities           175,000.00 Cash flow from Investing activities Sale of invt(74000-52000-10000)                12,000.00 Purchase of PPE             (58,000.00) Cash flow from Investing activities           (46,000.00) Cash flow from Financing activities Dividends Paid(160,000-130,000)(Income - Inc in RE)             (30,000.00) Cash flow from Financing activities           (30,000.00) Closing cash and cash equivalents           177,000.00 Free Cash Flow = Income + Depreciation - Capital Expenditures Free Cash Flow = 160,000+17000 - 58000 Free Cash Flow = 119,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---