Prepare Cash Flow Statement for XYZ company for the year ending Dec. 31,2013. Id
ID: 2579524 • Letter: P
Question
Prepare Cash Flow Statement for XYZ company for the year ending Dec. 31,2013.
Identifying: Cash flow from operating activites, cash flow from invensting activities, and cash flow from financing activities as well as total change in cash and cash balance on Dec. 31, 2013 :
Net Income, 2013........................................1,446,000
Depr. expense.................................................260,000
Gain on sale of a machine.................................80,000
Decrease in Accts receiveble...........................122,000
Increase in inventory.........................................215,000
Increase in current liablities...............................312,000
Equipment sold..................................................764,000
Machines purchased.......................................1,320,000
Bonds payable paid.........................................1,830,000
Common stock issued (sold)...........................2,300,000
Dividends paid....................................................630,000
Cash Balance, Jan. 1, 2013...........................$1,280,000
Net Change in cash in 2013................. ?
Cash Balance, Dec. 31, 2013 ................. ?
Explanation / Answer
XYZ Company Cash Flow Statement For year ended 31 December 2013 Cash flows from operating activities Net Income $ 1,446,000 Adjustments to Reconcile Net income to net cash provided by Operating Activities Depreciation expense $ 260,000 Gain on sale of machinery $ (80,000) Decrease in accounts receivable $ 122,000 Increase in inventory $ (215,000) Increase in current liabilities $ 312,000 $ 399,000 Net cash provided by operating activities $ 1,845,000 Cash flows from investing activities Proceeds from sale of equipment $ 764,000 Purchase of machines $ (1,320,000) Net cash provided by investing activities $ (556,000) Cash flows from financing activities Repayment of bonds $ (1,830,000) Proceeds from issue of common stock $ 2,300,000 Dividend paid $ (630,000) Net cash used by financing activities $ (160,000) Net increase in cash and cash equivalents $ 1,129,000 Cash and cash equivalents at beginning of period $ 1,280,000 Cash and cash equivalents at end of period $ 2,409,000