I will rate the answer that best completes the question. Please use excel format

ID: 2661111 • Letter: I

Question

I will rate the answer that best completes the question. Please use excel format, i will give you a email address to send it to.

1025000

Based on additional information added in modules 3 and 4, please use the information below to make a statement of cash flows.

Using the Indirect Method, prepare a statement of cash flows for the company in good formatand compare two financial statements between the income statement and statement of cash flows.

LIABILITIES AMOUNT($) ASSETS AMOUNT($) Common stock 10000+150000 = 160000 LAND 400000 Paid-in capital 50000 Equipment 415,000 RETAINED EARNINGS 250000 OPENING BALANCE[B/F] 75350 ADD:-PROFIT OF YEAR 189650 LESS:-DIVIDEND PAID 15000 Long-term debt 127,000 Accounts payable 78,000 Accounts receivable 50,000 NOTES PAYABLE [LAND] 360000 Cash [50000+150000-40000]= 160000 TOTAL

1025000

Based on additional information added in modules 3 and 4, please use the information below to make a statement of cash flows.

The beginning cash balance is $50,000.
Use the Net Income from Module 3.
Use depreciation expense of Module 2.
During the year 13, Inventory increases by $42,500.
During the year 13, Land increases by $400,000.
During the year 13, Long-Term Debts increase by $360,000.
During the year 13, the company made a secondary offering of stock and raised an additional $150,000.
During the year 13, the company had paid $15,000 in dividends.

Using the Indirect Method, prepare a statement of cash flows for the company in good formatand compare two financial statements between the income statement and statement of cash flows.

Explanation / Answer

CASH FLOW FROM OPERATING ACITIVITIES

NET PROFIT DURING THE YEAR

189650

ADD:-DEPRECIATION

24350

LESS:-INCREASE IN INVENTORY

42500

CASHINFLOW FROM OPARTING ACTIVITIES

171500

CASHFLOW FROM INVESTING ACTIVITIES

PURCHASE OF LAND

40000

CASHOUTFLOW FROM INVESTING ACTIVITIES

-40000

CASHFLOW FROM FINANCING ACTIVITIES

ISSUE OF LONG TERM DEBTS

360000

ISSUE OF COMMON STOCK

150000

DIVIDEND PAID

15000

CASHINFLOW FROM FINANCING ACTIVITIES

495000

NET CASHINFLOW DURING THE YEAR

626500

ADD:-OPENING CASH BALANCE

50000

CLOSING CASH BALANCE

676500