Use the following information to create a SCF for the Green Restaurant Show form
ID: 2473098 • Letter: U
Question
Use the following information to create a SCF for the Green Restaurant Show formulas used to get the information
Net Income $116,300
Depreciation $15,000
Decrease in Accounts Receivables $10,000
Increase in Inventory $3,000
Decrease in accounts Payable $16,500
Purchased Equipment $35,000
Payment of Long-Term Debt $25,000
Purchase of Investments $60,000
Net Cash Flow:
Net Income
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation
Accounts Receivable
Inventory
Accounts Payable
Net cash flow from operating activities:
Investing Activities
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Net cash flow from Investing activities:
Financing Activities
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Net cash flow used in Financing Activities:
Net Increase in Cash during the Current year
Or
Net Decrease in Cash during the current year
Explanation / Answer
Net Income 116,300 Add: Depreciation 15,000 131,300 Add: Decrease in accounts receivable 10,000 Less: Increase in Inventory (3,000) Less: Decrease in accounts payable (16,500) Cash from Operating activities 121,800 Investment activities: Less: Purchase of equipments (35,000) Less: Purchase of Investments (60,000) Net Cash flow from Investing activities (95,000) Financing activities: Payment of Long Term Debt (25,000) Net Cash flow used in Investing activities (25,000) Net increase in Cash during the year 1,800