I. Statement of Cash Flows (44 points) Required: Comf Using the information belo

Question

I. Statement of Cash Flows (44 points) Required: Comf Using the information below, prepare in good form a St atement of Cash Flows for Southerm ort Furniture, Inc. on the following page. Information from the December 31, 2014 and 2013 balarce sheets are presented below 2014 2013 (Decrease Cash Accounts Receivable, net Inventory Prepaid Expenses Building and Equipment, net S 348,000 3 298.000 938,000 738.000 5 80 000 680,000 59,000 3.448. 000 7,000 Accounts Payable Income Taxes Payable Notes Payable (long-term $ 645,000 1,600,000 1,222,000 S 693.000 104,000 1645,000 45 000 10,000 190.000 Common Stock, $1 par Paid-in Capital in Excess of Par 1,412,000 1.094 Retained Earnings $4742

Explanation / Answer

Answer:

Statement of cash Flow Net income 389000 cash Flow from operating activities Depreciation 90000 Gain on sale of equipment -5000 Decrease in accounts receivable 125000 Decrease in inventory 56000 Increase in accounts payable 48000 Decrease in income tax payable -26000 Increase in Prepaid exp -7000 Net cash flow from operating activities 670000 Cash Flow From investing Activities: Purchase of Building -620000 Sale of equipment 40000 Net cash used in investing activities -580000 Cash Flow from financing activities: Paid notes payable -180000 Issuance of common stock 200000 Dividend paid -50000 Net cash flow used in financing activities -30000 Net increase or Dec in cash 60000 Add: opening cash 288000 Closing cash 348000

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