Prepare a statement of cash flows using the indirect method. Use the minus sign
ID: 2487372 • Letter: P
Question
Prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, or cash payments.
Barry Company
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flows from operating activities:
$
$
$
$
Net cash flow from operating activities
$
Cash flows from investing activities:
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
$
Net cash flow used for financing activities
$
Cash at the beginning of the year
Cash at the end of the year
$
HidePrepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, or cash payments.
Barry Company
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flows from operating activities:
$
$
$
$
Net cash flow from operating activities
$
Cash flows from investing activities:
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
$
Net cash flow used for financing activities
$
Cash at the beginning of the year
Cash at the end of the year
$
Explanation / Answer
Statement of Cash Flows of Barry Company for the year ended 31st December 2011 Particulars Rs. Cash Flow from Operating Activities Net Income 75800 Depreciation on Fixed Assets 38000 Decrease in Account Receivable 9200 Increase in Inventories -16000 Increase in Accounts Payable -12500 Net Cash Flow From Operating Activities ( A ) 94500 Cash Flow from investing Activitiies Sale of Investments 125000 Bonds Payable -75000 Net Cash Flow From Investing Activities ( B ) 50000 Cash Flow from Financing Activities Dividend Paid -40000 Shares of Common Stock -75000 Net Cash Flow from Financing Activities ( C ) -115000 Net Cash Flow ( A ) + ( B ) +( C) = ( D ) 29500 Add : Cash Flow at the beginning of the year ( E ) 42500 Cash Flow at the end of the year ( D ) + ( E ) = ( F ) 72000