Create a Cash Flow Statement in good form for Gotham for the 20X1 and 20X2. You\
ID: 2588926 • Letter: C
Question
Create a Cash Flow Statement in good form for Gotham for the 20X1 and 20X2.
You've been given a 3-year Balance Sheet and a a 2-year Income Statement for Gotham, Inc. Use those to create a Cash Flow Statement in good form for Gotham for the 20X1 and 20X2. You may work with one person, but you each must submit your own work. Put that person's name here Balance Sheet Gotham as of 12/31 20X0 20X1 20X2 ASSETS: 80,500 33,000 110,000 40,000 3,000 20,000 25,000 100,000 15,000 85,000 283,000 100,000 25,000 Cash Accounts Receivable Supplies Inventory Investment Equipment Accumulated Depreciation BV of Equipment 10,000 20,000 172,000 20,000 152,000 295,500 15,000 100,000 10,000 90,000 235,000 TOTAL ASSETS LIABILITIES: 20,000 75,000 100,000 7,500 202,500 100,000 35,000 125,000 Accounts Payable Notes Payable Bonds Payable Interest Payable 100,000 5,000 165,000 200,000 TOTAL LIABILITIES OWNERS EQUITY 50,000 20,000 70,000 235,000 53,000 30,000 83,000 283,000 53,000 40,000 93,000 295,500 Stock Retained Earnings TOTAL OE TOTAL LIABILITIES & OE Income Statement ABC Company for 20X2 20x2 80,000 $ 100,000 50,000 50,000 20X1 Revenues COGS Gross Profit 20,000 Interest Expense Depreciation Expense Supplies Expense 5,000 2,000 8,000 5,000 5,000 Net Income 11,000 32,000Explanation / Answer
Cash flow statement particulars 2001 2002 Cash From Operations: Revenues $80,000 $100,000 Add: Opening A/R $25,000 $40,000 $105,000 $140,000 Less:Closing A/R $40,000 $33,000 Collections from revenues $65,000 $107,000 COGS $60,000 $50,000 Add:Opening A/p $35,000 $100,000 $95,000 $150,000 Less:Closing A/P $100,000 $20,000 Payments for COGS $5,000 -$130,000 Interest Expense $2,000 $8,000 Add:Opening Interest payable $5,000 $0 $7,000 $8,000 Less:Closing interest payable $0 $7,500 Interest paid -$7,000 -$500 Supplies opening $5,000 $3,000 less: charged to income stmt $2,000 $5,000 $3,000 -$2,000 Less:Closing $3,000 $0 Supplies bought $0 $2,000 -$2,000 Opening inventory $15,000 $20,000 Closing inventory $20,000 $10,000 Changes in Inventory -$5,000 $10,000 Opening Notes payable $125,000 $100,000 Closing Notes payable $100,000 $75,000 Changes in Notes payable -$25,000 -$25,000 Net income $11,000 $32,000 Increase in retained earnings $10,000 $10,000 Taxes paid -$1,000 -$22,000 total Cash from Operations(A) $32,000 -$62,500 Cash from Investing activities: Opening Investment $0 $25,000 Closing investment $25,000 $20,000 Net investment -$25,000 $5,000 Opening Equipment $100,000 $100,000 Closing Equipment $100,000 $172,000 Net Equipment $0 -$72,000 Total cash from Investing activities(B) -$25,000 -$67,000 Cash from Financing activities: Opening common stock $50,000 $53,000 Closing common stock $53,000 $53,000 Changes in common stock $3,000 $0 Opening Bonds payable $0 $0 Closing Bonds payable $0 $100,000 Changes in Bonds payable $0 $100,000 Total cash from Financing activities ( C) $3,000 $100,000 Total Cash Flow for the period(A+B+C) $10,000 -$29,500 Opening cash $100,000 $110,000 Closing Cash $110,000 $80,500