Question

Two way cellular accountants have assembled the following data for the year ended June 30, 2018: Cash receipt from sale of land $32,000 Net income $56,000 Depreciation expense 4,000 Cash purchase of equipment 35,000 Cash payment of dividends 5,600 Decrease in current liabilities 5,000 Cash receipt from issuance of common stock 16,000 Increase in current assets other than cash 28,000 Prepare two-way cellulars statement of cash flows using the indirect method for the year ended June 30t, 2018. Assume Beginning and ending cash are $49,000 and $83,400 respectively

Answer 1

Ans.	CASH FLOW STATEMENT
	PARTICULARS	AMOUNT	AMOUNT
	Cash flow from Operating Activities:
	Net income	56000
	Add: Non cash/operating expenses:
	Depreciation expenses	4000
	Operating profit before working capital changes	60000
	Less: Decrease in current liabilities	-5000
	Less: Increase in current assets	-28000
	Net cash provided by oeprating activities   (A)		27000
	Cash flow from Investing Activities:
	Cash receipt from sale of land	32000
	Cash purchase of equipment	-35000
	Net cash used by investing activities            (B)		-3000
	Cash flow from Financing Activities:
	Cash receipt from issuance of common stock	16000
	Cash payment of dividends	-5600
	Net cash provided by financing activities (c)		10400
	Net change in cash (A + B + C)		34400
	Add: Beginning balance of cash		49000
	Ending cash balance		83400