Question

I need assistance with statement of cash flows for year ending December 31, 2017

Selected financial statement information and additional data for Stanislaus Co. is presented below.

			December 31
			2016		2017
Cash			$42,180		$72,250
Accounts receivable (net)			85,510		143,900
Inventory			168,090		205,170
Land			58,970		19,050
Equipment			500,780		785,670
	TOTAL		$855,530		$1,226,040
Accumulated depreciation			$83,850		$114,170
Accounts payable			49,780		85,600
Notes payable - short-term			66,310		28,470
Notes payable - long-term			168,710		300,210
Common stock			420,990		491,270
Retained earnings			65,890		206,320
	TOTAL		$855,530		$1,226,040

Additional data for 2017:
1.		Net income was $221,560.
2.		Depreciation was $30,320.
3.		Land was sold at its original cost.
4.		Dividends of $81,130 were paid.
5.		Equipment was purchased for $83,110 cash.
6.		A long-term note for $201,780 was used to pay for an equipment purchase.
7.		Common stock was issued to pay a $70,280 long-term note payable.

Prepare a statement of cash flows for the year ending December 31, 2017.

Answer 1

Stanislaus Co.
Statement of Cash flows
For the year Ended December 31, 2017
Cash flows from Operating activities:
Net income		2,21,560
Adjustments to reconcile net income to net cash from operating activities :
Depreciation	30,320
Increase in Accounts Receivable	-58,390
Increase in Accounts Receivable	-37,080
Increase in Accounts Payable	35,820
Decrease in Notes Payable -Short term	-37,840
		-67,170
Net cash flow from operating activities		1,54,390
Cash flow form Investing activities
Cash paid for Purchase of Equipment	-83,110
Cash from sale of land	39,920
Net cash flow used for investing activities		-43,190
Cash flow from Financing Activities
Dividends paid	-81,130
Net cash flow used for financing activities		-81,130
Net cash generated during the year		30,070
Cash at the beginning of the year		42,180
Cash at the end of the year		72,250
Non-cash Investing and Financing Activities:
Purchase of equipment in exchage of Long term note		2,01,780
Issue of common stock for a long term note payable		70,280
Total Non-cash Investing and Financing Activities		2,72,060