Prepare Cash Flow statement for SMART Corporation under Direct method using the
ID: 2540142 • Letter: P
Question
Prepare Cash Flow statement for SMART Corporation under Direct method using the following information:
Beginning Cash balance 12,000
Cash collected from sales 10,000
Cash collected issuance of bond 20,000
Cash receipt from sell of equipment 5,000
Cash receipt from sell of stock 8,000
Salary payments for employees 4,000
Tax payments 2,500
Dividend payments 1,000
Company bought Furniture’s 1,500
PREPARE CASH FLOW STATEMENT
Explanation / Answer
Cash flow statement :
cash flow from operating activities Cash collected from sales 10000 Salary payments for employees (4000) Tax payments (2500) Net cash flow from operating activities 3500 Cash flow from investing activities Cash receipt from sell of equipment 5000 Company bought Furniture’s (1500) Net cash flow from investing activities 3500 Cash flow from financing activities Cash collected issuance of bond 20000 Cash receipt from sell of stock 8000 Dividend payments (1000) Net Cash flow from financing activities 27000 Net cash flow 34000 Beginning balance 12000 Ending balance 46000