In: Accounting
The following information is available for Coronado Industries
for the year ended December 31, 2017.
Beginning cash balance | $ 46,575 | |
Accounts payable decrease | 3,830 | |
Depreciation expense | 167,670 | |
Accounts receivable increase | 8,487 | |
Inventory increase | 11,385 | |
Net income | 294,044 | |
Cash received for sale of land at book value | 36,225 | |
Cash dividends paid | 12,420 | |
Income taxes payable increase | 4,865 | |
Cash used to purchase building | 299,115 | |
Cash used to purchase treasury stock | 26,910 | |
Cash received from issuing bonds | 207,000 |
Prepare a statement of cash flows using the indirect method.
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
Coronado Industries |
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Cash Flow Statement |
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For year ended 31st December 2017 |
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A. Cash Flows from Operating Activity |
||
Net Income |
$ 294,044.00 |
|
Adjustments to reconcile net income to net cash flow from operating activities: |
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Depreciation expense |
$ 167,670.00 |
|
Changes in current operating assets and liabilities: |
||
Increase in Accounts receivables |
$ (8,487.00) |
|
Increase in Inventory |
$ (11,385.00) |
|
Increase in income tax payable |
$ 4,865.00 |
|
Decrease in Accounts payable |
$ (3,830.00) |
|
$ 148,833.00 |
||
Net cash flow from Operating activities |
$ 442,877.00 |
|
B. Cash flows from Investing Activities |
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Cash received from sale of land |
$ 36,225.00 |
|
Purchase of Building |
$ (299,115.00) |
|
Net cash flow used for investing activities |
$ (262,890.00) |
|
C. Cash Flows from Financing activities |
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Purchase of treasury stock |
$ (26,910.00) |
|
Issue of Bond |
$ 207,000.00 |
|
Cash paid for dividends |
$ (12,420.00) |
|
Cash flows from Financing activities |
$ 167,670.00 |
|
Net Increase (Decrease) in Cash [A+B+C] |
$ 167,670.00 |
|
Cash at the beginning |
$ 46,575.00 |
|
Cash at the end |
$ 214,245.00 |