Question

VALIUM’S MEDICAL SUPPLY CORPORATION Income Statement for Years Ending December 31, 2015 and 2014 (in thousands of dollars) 2015 2014 Net sales $ 926 $ 836 Less: Cost of goods sold 406 369 Gross profits $ 520 $ 467 Less: Other operating expenses 64 58 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 456 $ 409 Less: Depreciation 50 48 Earnings before interest and taxes (EBIT) $ 406 $ 361 Less: Interest 65 59 Earnings before taxes (EBT) $ 341 $ 302 Less: Taxes 148 128 Net income $ 193 $ 174 Less: Preferred stock dividends $ 6 $ 6 Net income available to common stockholders $ 187 $ 168 Less: Common stock dividends 75 75 Addition to retained earnings $ 112 $ 93 Per (common) share data: Earnings per share (EPS) $ 1.87 $ 2 Dividends per share (DPS) $ 0.75 $ 0.75 Book value per share (BVPS) $ 7.00 $ 5.88 Market value (price) per share (MVPS) $ 8.03 $ 6.36

Prepare a statement of cash flows for Valium’s Medical Supply Corporation. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

  

Statement of Cash Flows for Year Ending December 31, 2015 (in thousands of dollars)
A. Cash flows from operating activities
(Click to select)Net incomeNet loss	$
Additions (sources of cash):
(Click to select)Increase in other long-term assetsDepreciationIncrease in accrued wages and taxesIncrease in accounts payableIncrease in fixed assets
(Click to select)Increase in fixed assetsIncrease in accrued wages and taxesIncrease in accounts payableIncrease in other long-term assetsDepreciation
(Click to select)Increase in accounts payableDepreciationIncrease in fixed assetsIncrease in accrued wages and taxesIncrease in other long-term assets
Subtractions (uses of cash):
(Click to select)Increase in notes payableIncrease in inventoryIncrease in other long-term assetsIncrease in accounts receivableIncrease in common and preferred stock
(Click to select)Increase in notes payableIncrease in common and preferred stockIncrease in accounts receivableIncrease in inventoryIncrease in other long-term assets
Net cash flow from operating activities	$
B. Cash flows from investing activities
Subtractions:
(Click to select)Increase in accrued wages and taxesIncrease in fixed assetsIncrease in other long-term assetsIncrease in notes payableIncrease in long-term debt	$
(Click to select)Increase in accrued wages and taxesIncrease in other long-term assetsIncrease in long-term debtIncrease in notes payableIncrease in fixed assets
Net cash flow from investing activities	$
C. Cash flows from financing activities
Additions:
(Click to select)Increase in inventoryIncrease in accounts payableIncrease in notes payableIncrease in long-term debtIncrease in common and preferred stock	$
(Click to select)Increase in accounts payableIncrease in inventoryIncrease in common and preferred stockIncrease in long-term debtIncrease in notes payable
(Click to select)Increase in notes payableIncrease in accounts payableIncrease in common and preferred stockIncrease in inventoryIncrease in long-term debt
Subtractions:
(Click to select)Preferred stock dividendsIncrease in other long-term assetsIncrease in accounts payableCommon stock dividendsIncrease in inventory
(Click to select)Increase in other long-term assetsPreferred stock dividendsIncrease in inventoryCommon stock dividendsIncrease in accounts payable
Net cash flow from financing activities	$
D. Net change in cash and marketable securities	$

Answer 1

Based on the Information provided in the above question. Cash Flow statement is prepared on the basis of income statement information provided.

	Statement of Cash Flows for Year Ending December 31, 2015
	(in thousands of dollars)
	A. Cash flows from operating activities
	(Click to select)Net incomeNet loss	$193
	Additions (sources of cash):
	Depreciation	50
	Increase in Accrued Wages and Taxes	0
	Subtractions (uses of cash):	0
	Net cash flow from operating activities	$243
	B. Cash flows from investing activities
	Subtractions:
	(Click to select)Increase in accrued wages and taxesIncrease in fixed assetsIncrease in other long-term assetsIncrease in notes payableIncrease in long-term debt	$0
	Net cash flow from investing activities	$0
	C. Cash flows from financing activities
	Additions:
	(Click to select)Increase in inventoryIncrease in accounts payableIncrease in notes payableIncrease in long-term debtIncrease in common and preferred stock	$0
	Subtractions:
	Preferred Shares Dividend	-6
	Common StockDividends	-75
	Net cash flow from financing activities	($81)
	D. Net change in cash and marketable securities	$162