Question

compute the statement of cash flows -- compute the amount of cash from operating activities, cash from investing activities, and cash from financing activities.

INCOME STATEMENT, 2018

REVENUES	$1,000
COGS EXCL. DEPRECIATION	600
DEPRECIATION	100
EXPENSES	200
EBIT	100
INTEREST	50
EBT	50
TAXES @ 40%	20
NET INCOME	30

BALANCE SHEETS

12/31/17	12/31/18
CASH                          $100	CASH                            $280
A/R                                  50	A/R                                  100
INVENTORIES             90	INVENTORIES             150
CURRENT ASSETS   240	CURRENT ASSETS      530
GROSS PP&E            1,000	GROSS PP&E              1,000
- ACCUM. DEPRE.      300	- ACCUM. DEPRE         400
NET PP&E                    700	NET PP&E                      600
TOTAL ASSETS          940	TOTAL ASSETS         1,130
A/P                                   40	A/P                                     50
ACCRUALS                   50	ACCRUALS                     50
ST DEBT                         50	ST DEBT                         100
CURRENT LIAB.        140	CURRENT LIAB.          200
LONG TERM DEBT   400	LONG TERM DEBT     500
TOTAL LIAB.              540	TOTAL LIAB                 700
TOTAL EQUITY         400	TOTAL EQUITY           430
TOTAL LIAB.+EQ.     940	TOTAL LIAB.+EQ.    1,130
TOTAL COMMON SH.   200	TOTAL COMMON SH.   200

CURRENT PRICE/SHARE = $10

Answer 1

CASH FLOW STATEMENT

CASH FLOW FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAX AND INTEREST   100

ADJUSTMENTS FOR

  DEPRECIATION 100

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 200

CHANGES IN WORKING CAPITAL

LESS : INCREASE IN AR    (100-50) (50)

LESS : INCREASE IN INVENTORIES (150-90) (60)

LESS : INCREASE IN CURRENT ASSETS    (530-240) (290)

ADD : INCREASE IN AP     (50-40)    10

ADD : INCREASE IN CURRENT LIABILITIES   (200-40) 160

CASH GENERATED FROM OPERATIONS (30)

TAXES PAID (20)

NET CASH USED IN OPERATING ACTIVITIES A (50)

CASH FLOW FROM INVESTING ACTIVITIES B 0

PROCEEDS FROM SHORT TERM DEBT    50

PROCEEDS FROM LONG TERM DEBT 100

PROCEEDS FROM ISSUE OF EQUITY     30

INTEREST PAID (50)

CASH FLOW FROM FINANCING ACTIVITIES C    130

NET INCREASED IN CASH AND CASH EQUIVALENTS (A+B+C) 80

CASH AND CASH EQUIVALENTS IN THE BEGINNING OF THE PERIOD 100

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 180