Question

a. Using the information for the Seville Corporation above, calculation the cash flow from operating activities.
b. Using the information for the Seville Corporation above, calculation the cash flow from investing activities.
c. Using the information for the Seville Corporation above, calculation the cash flow from financing activities.
Accounts payable increase	9,000
Accounts receivable increase	4,000
Accrued liabilities decrease	3,000
Amortization expenses	6,000
Cash balance Jan 1	22,000
Cash balance Dec 31	1,500
Cash paid as dividends	2,900
Cash paid to purchase land	90,000
Cash paid to retire bonds payable at par	60,000
Cash received from issurance of common stock	35,000
Cash received from sale equipment	17,000
Depreciation expenes	29,000
Gain on sale of equipment inventory decreases	4,000
Inventory decrease	13,000
Net Income	76,000
Prepaid expenses increase	2,000

Answer 1

Seville Corporation
Cash Flow Statement
For year ended 31st December
A. Cash Flows from Operating Activity		$      76,000.00
Net Income
Adjustments
Depreciation expense	$      29,000.00
Increase in Accounts receivables	$      (4,000.00)
Increase in Prepaid Expenses	$      (2,000.00)
Gain on sale of Equipment	$      (4,000.00)
Amortization Expense	$        6,000.00
Decrease in Inventory	$      13,000.00
Increase in Accounts Payable	$        9,000.00
Decrease in Accrued Liability	$      (3,000.00)
		$      44,000.00
Net cash flow from Operating activities		$    120,000.00
B. Cash flows from Investing Activities
Sale of land
Sale of Sale of equipment	$      17,000.00
Purchase of Land	$    (90,000.00)
Net Cash flows from Investing activities		$    (73,000.00)
C. Cash Flows from Financing activities
Issuance of Common Stock	$      35,000.00
payments of dividends	$      (2,900.00)
Retirement of Bonds	$    (60,000.00)
Cash flows from Financing activities		$    (27,900.00)
Net Increase (Decrease) in Cash [A+B+C]		$      19,100.00
Cash at the beginning		$      22,000.00
Cash at the end		$      41,100.00

Two Items in the Details Provided above seems to be incorrect. Assuming that a (0) is missing in Ending cash balance and dividend paid. Actual Amount of cash ending balance would be taken as 15000 and dividend paid is taken to be 29000.

Another Cash flow statement is also given below with the 2 adjustments as stated above.

	Student is advised to feel free to give comment in case of any query.
Seville Corporation
Cash Flow Statement
For year ended 31st December
A. Cash Flows from Operating Activity			$      76,000.00
Net Income
Adjustments
Depreciation expense		$      29,000.00
Increase in Accounts receivables		$      (4,000.00)
Increase in Prepaid Expenses		$      (2,000.00)
Gain on sale of Equipment		$      (4,000.00)
Amortization Expense		$        6,000.00
Decrease in Inventory		$      13,000.00
Increase in Accounts Payable		$        9,000.00
Decrease in Accrued Liability		$      (3,000.00)
			$      44,000.00
Net cash flow from Operating activities			$    120,000.00
B. Cash flows from Investing Activities
Sale of land
Sale of Sale of equipment		$      17,000.00
Purchase of Land		$    (90,000.00)
Net Cash flows from Investing activities			$    (73,000.00)
C. Cash Flows from Financing activities
Issuance of Common Stock		$      35,000.00
payments of dividends		$    (29,000.00)
Retirement of Bonds		$    (60,000.00)
Cash flows from Financing activities			$    (54,000.00)
Net Increase (Decrease) in Cash [A+B+C]			$      (7,000.00)
Cash at the beginning			$      22,000.00
Cash at the end			$      15,000.00