Question

Balance Sheets for the Years Ending Dec. 31, 2011 and 2012
		2011		2012
Cash		300		400
Accounts receivable		1,000		1,400
Inventories		3,200		3,000
Current assets		4,500		4,800
Net fixed assets		3,800		4,300
Total assets		8,300		9,100
Notes payable		400		300
Accounts payable		700		500
Accruals		50		80
Current portion of long-term debt		70		80
Current liabilities		1,220		960
Long-term debt		4,300		4,900
Common stock ($.20 par)		1,200		1,300
Additional paid-in capital		680		740
Retained earnings		900		1,200
Total liabilities and equity		8,300		9,100

Net income (as reported on the 2012 Income statement) = 832

Depreciation (as reported on the 2012 Income statement) = 382

Net Cash Flow from Operating Activities = __________

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second part of question.. USE BALANCE SHEET ABOVE

Using the following information, compute Net Cash Flow from Investing Activities. Note that some of the numbers in this problem are the same as those in the previous problem. Some, however, are different. You must answer this problem separately.

Net income (as reported on the 2012 Income statement) = 566

Depreciation (as reported on the 2012 Income statement) = 219

Net Cash Flow from Investing Activities = __________

_______________________________________________

USE BALANCE SHEET ABOVE TO ANSWER BELOW

Net income (as reported on the 2012 Income statement) = 491

Depreciation (as reported on the 2012 Income statement) = 396

Net Cash Flow from Financing Activities = __________

Answer 1

Calculation of cash flows from operating activities

Net income	832
Adjustments:
Depreciation expense	382
Increase in current assets (Accounts receivable)	- 400
Decrease in current assets (Inventory)	200
Decrease in current liabilities
Notes payable	- 100
Accounts payable	- 200
Increase in current liabilities
Accruals	30
Current portion of long-term debt	10
Net cash flows from operating activities

Calculation of cash flows from investing activities

Purchase of fixed asset	- 719
Net cash used in investing activities	- 719

Fixed assets account

Beginning balance	3,800	Depreciation	219
Cash (purchase)	719	Ending balance	4,300
	4,519		4,519

Calculation of cash flows from financing activities

Increase in long term debt	600
Issue of common stock (100 + 60)	160
Net cash flows from financing activities	760

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