Question

I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE!

Income Statements

$MM	2009	2010	2011	2012	2013
Revenue Cost of goods sold Gross profit	404 (188) 216	364 (174) 190	425 (206) 219	511 (247) 264	604 (293) 310
Sales Administrations Depreciation EBIT	(67) (61) (27) 61	(66) (59) (27) 38	(83) (59) (34) 42	(102) (66) (38) 58	(121) (79) (39) 71
Interest expenses Pre tax income Income tax Net income	(34) 27 (10) 17	(33) 5 (2) 3	(32) 10 (3) 7	(37) 21 (7) 14	(37) 21 (7) 14
Shares outstanding (MM)	55	55	55	55	55
Dividend paid	5	5	5	5	5
Retained earnings	12	(2)	2	9	13(1)

(1) Should be 15, 13 is due to the cumulative rounding

Balance Sheets (year end)

$MM	2019	2010	2011	2012	2013
Cash Accounts receivable Inventory Total CA	49 89 34 172	69 70 31 170	86 70 28 184	77 77 31 185	85 86 35 206
Plants & equipment	606	604	671	708	710
Total assets	778	774	855	893	916
Accounts payables Accurals Total CL	19 7 26	18 6 24	22 7 29	27 8 35	32 10 42
Long term debt Common equity	500 252	500 250	575 251	600 258	600 274
Total liability & equity	778	774	855	893	916

Answer 1

Cash flow statement for 2010 can be prepared using the indirect method in the following format

Workings

Cash flow statement is prepared to understand the sources and uses of cash during an accounting period.

When indirect method is used, we start with net income and add to it non-cash items plus changes in working capital. This gives us cash from operating activities. Cash from investing activities deals with inflows & outflows related to investments and fixed assets. Cash from financing activities deals with inflows & outflows related to long term liabilities & equity.

The workings of above cash flows statement are as follows:

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