Question

Based on the following information, prepare Huff & Puff's Statement of Cash Flows for 2017.
Net Income	$        68,000		Payment for purchase of equipment	$          8,000
Increase in accounts receivable	$          4,400		Receipt from sale of preferred stock	$        20,000
Receipt from sale of common stock	$        12,300		Increase in income tax payable	$          3,500
Depreciation Expense	$        11,300		Payment for purchase of land	$          9,700
Dividends Paid	$        24,500		Decrease in accounts payable	$          2,900
Payment for purchase of building	$        65,000		Increase in inventories	$        10,300
Receipt from sale of long term investment at cost	$        10,600		Beginning Cash balance	$        18,000

Answer 1

Statement of Cash Flows for 2017.

Cash flow from operating activities
Net income		68000
Adjustment to reconcile net income to net cash flow from operating activities
Depreciation Expense	11300
Increase in accounts receivable	-4400
Increase in income tax payable	3500
Decrease in accounts payable	-2900
Increase in inventories	-10300
		-2800
Net cash flow from operating activities		65200
Cash flow from investing activities
Payment for purchase of building	-65000
Receipt from sale of long term investment at cost	10600
Payment for purchase of equipment	-8000
Payment for purchase of land	-9700
Net cash used in investing activities		-72100
Cash flow from financing activities
Receipt from sale of common stock	12300
Receipt from sale of preferred stock	20000
Dividend paid	-24500
Net cash flow from financing activities		7800
Net cash increase (decrease)		900
Beginning Cash		18000
Ending Cash		18900