Question

REQUIRED: Prepare the three sections of the statement of cash flows. Be certain to label all
numbers presented.
The HUBB Corporation has the following information available from the 2020 Income
Statement and the 2019 and 2020 comparative balance sheets:
Sales $ 450,000
COGS - 220,000
GP 230,000
- Oper Exp - 130,000
- Interest Exp -10,000
+ Gain on Sale + 2,000
- Taxes - 32,000
Net Income 60,000

2020 2019
Cash $49,000 $62,000
Acct Receivable 55,000 40,000
Inventory 190,000 175,000
Ppd Insurance -0- 4,000
Fixed Assets
Accumulated Depreciation

200,000
34,000

135,000
30,000
Acct Payable 10,000 12,000
Interest Payable 7,000 2,000
Income Tax Payable 3,000 6,000
Accrued Salary Payable 3,000 2,000
Note Payable 145,000 100,000
Common Stock ($10 par) 140,000 120,000
APIC- C/S 5,000 -0-
Retained Earnings 147,000 144,000
*Purchased new equipment, $10,000.
*purchased new office equipment, $75,000 on a 3-yr note.
*Sold truck (cost $20,000, acc depr of $15,000) for $7,000.
*Paid off $30,000 of Notes Payable.
*Sold 2,000 shares of Common stock.
*Paid dividends.

Answer 1

sol:

HUBB Corporation
CASH FLOW STATEMENT
For the Year Ended 31 December, 2020
Cash flow from operating activities
Net Income	60,000
Adjustments to reconcile net income to net cash provided by operation
Depreciation Expense	19,000
Gain on sale	-      2,000
Increase in Accounts Receivable	-     15,000
Increase in Inventory	-     15,000
Decrease in Prepaid Insurance	4,000
Decrease in Accounts Payable	-      2,000
Increase in Interest Payable	5,000
Decrease in Income Tax Payable	-      3,000
Increase in Accrued Salary Payable	1,000
Net cash provided by (used in) opearting activities		52,000
Cash flow from investing activities
Purchased new equipment	-     10,000
Sale of truck	7,000
Net cash provided by (used in) investing activities		-         3,000
Cash flow from financing activities
Repayment of Notes Payable	-     30,000
Issuance of common stock	25,000
Cash Dividend Paid	-     57,000
Net cash provided by (used in) financing activities		-        62,000
Net increase (decrease) in cash and equivalents		-        13,000
Cash and equivalent at beginning of year		62,000
Cash and equivalent at end of year		49,000

Please up vote....Its very usefull for us .....Thank you .....So Much......If any qurries comment below....I will resolve ASAP....Until u got.....