Question

The following information pertains to the B, Inc. entity for (fiscal) year ended December 31, 2015. Based upon the information provided, please present the Statement of Net Cash Flow for B, Inc. for the year ended December 31, 2015.

• Net Income for the year was $26,000
• Depreciation Expense for the year was $ 21,000
• A/R increased by $ 5,000 during the year
• Merchandise Inventory decreased by $ 29,000 during the year
• ShortTerm Notes Payable showed a net decrease of $ 11,000 for the year
• A/P showed a net decrease of $ 4,000 for the year
• Other ShortTerm Debt showed a net increase of $ 7,000 for the year
• A cash sale of land was made for $ 52,000
• A cash purchase of a building totaled $ 65,000
• The firm paid off a $ 5,000 loan from lenders
• The firm repurchased Common Stock for $ 7,000

Answer 1

B Inc. Statement of Cash Flows For the year ended December 31, 2015
	$	$
Cash Flows from Operating Activities
Net Income		26,000
Adjustments to reconcile net income with net cash flows from operations
Depreciation Expense	21,000
Increase in Accounts Receivable	(5,000)
Decrease in Merchandise Inventory	29,000
Decrease in Short Term Notes Payable	(11,000)
Decrease in Accounts Payable	(4,000)
Increase in Short Term Debt	7,000	37,000
Net Cash Flows from Operating Activities		63,000
Cash Flows from Investing Activities
Cash from Sale of Land	52,000
Cash paid to purchase Building	(65,000)
Net cash used in Investing Activities		(13,000)
Cash Flows from Financing Activities
Cash paid to retire debt	(5,000)
Cash paid to repurchase common stock	(7,000)
Net cash used in Financing Activities		(12,000)
Net increase in Cash and Cash Equivalents		$ 38,000