Question

Use the Assessment 3, Part 2 Template to determine the appropriate activity (operating, investing, or financing) for each transaction listed for Skylar Enterprises, Inc., and prepare the cash flow statement using the indirect method in good form for reporting. Data is provided in the Information worksheet in the template; complete the statement of cash flow in the Cash Flow Statement worksheet.

Skylar Enterprises, Inc. Comparative Balance Sheets
Assets		12/31/12		1/1/12		Difference
Cash		$73,000		$22,000		$51,000
Accounts receivable		$85,000		$76,000		$9,000
Inventory		$170,000		$189,000		$19,000
Land		$75,000		$100,000		$25,000
Equipment		$260,000		$200,000		$60,000
Accum. Depreciation - Equipment		-$66,000		-$32,000		$34,000
Total		$597,000		$555,000
Liabilities and Equities
Accounts payable		$39,000		$47,000		$8,000
Bonds payable		$150,000		$200,000		$50,000
Common stock		$216,000		$174,000		$42,000
Retained earnings		$192,000		$134,000		$58,000
Total		$597,000		$555,000
Additional Information: 1. Net income for 2012 was $103,000. 2. Cash dividends of $45,000 were paid. 3. Bonds payable amounting to $55,000 were redeemed. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2012. 6. Land was sold at cost during 2012.

Create the Cashflow Statement Below:

Cash Flow Operating Activities:

Cash Flow From Investing Activities:

Cash Flow From Financing Activities:

Answer 1

Skylar Enterprises, Inc.
Statement of cash Flows
For year ended Dec 31 2012
Cash Flow From operating activities:
Net Income	103000
Adjustments for Non Cash Effects:
Depreciation Expense	34000
Gain on redemption	5000
Amortization exp
Changing in operating assets and liabilities
Increase in Accounts Receivable	-9000
Decresae in Inventory	19000
Decrease in Acoounts Payable	-8000
Net Cash Flow from Operating activity		144000
Cash Flow from Investing activity
Purchase of Equipment	-60000
Sale of land	25000
Net cash Flow used for investing activity		-35000
Cash Flow from financing activity
Issuance of Common Stock	42000
Retirement of Bonds payable	-55000
payment of Dividends	-45000
Net Cash Flow for financing activity		-58000
Net INCREASE/(Decrease ) in cash		51000
Cash balance January 1		22000
Cash balance Dec 31		73000