prepare statement of cash flow for year ended dec 31,2018. present operating cas

Question

prepare statement of cash flow for year ended dec 31,2018. present operating cash flow activities by direct method

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for M Additional information from the accounting records of Metagrobolize also is provided METAGROBOLIZE INDUSTRIES comparative Balance Sheet s December 31, 2018 and 2017 (s in eees) 2018 2017 Assets Cash Accounts recelvable Inventory Land Building 35e 500 580 988 $485 245 19e 275 450 9e9 Less: Accumulated depreciation Equipment 2,5ee 2,158 Lessi Accumulated depreciation (325) 1,800 3ee) 1,158 Patent 5 5,538 4,888 Liabilities Accounts payable 5 680 158 130 130 ccrued expense; payable Lease 1iability 1and Shareholders Equity conmon stock Paid-in capital-excess of par Retained e 3 008 728 650 756 annings K Prex 9of Next rch

Explanation / Answer

cash flow from operating activities:

cash collection from customers 2395 (Note 1)

cash paid to suppliers -825 (Note 2)

cash payment for operating activities -580 (Note 3)

cash flow from operating activities 990

Note 1- sales during the period 2555

   net increase in account receivable -160

cash collected from customers 2395

Note 2- purchases during the period= net increase in invenetory (225) + cost of goods sold (800)= 1025

cash paid to suppliers = purchases during the period (1025)-net increase in suppliers (200)= 825

Note 3- operating expenses paid during the period = operating expenses for the period (600)- finance lease payment (20) = 580

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