Question
In: Accounting
Net income for the year: 65,000 Depreciation: 25,000 Beginning Balances 1/1/17 Cash: 50,000 AR: 100,000 LT...
Net income for the year: 65,000 Depreciation: 25,000 Beginning Balances 1/1/17 Cash: 50,000 AR: 100,000 LT Investments: 50,000 Plant Assets: 250,000 Accum. Dep. 50,000 Current liabilities: 65,000 Bonds Payable: 0 Common Stock: 254,000 RE: 81,000 Ending Balances 12/31/17 Cash: 85,000 AR: 185,000 LT Investments: 50,000 Plant Assets: 225,000 Accum. Dep. 75,000 Current liabilities: 45,000 Bonds Payable: 25,000 Common Stock: 254,000 RE: 146,000
Prepare general cash flow
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Expert Solution
Solution:
| Statement of Cash Flows | ||
| For current year | ||
| Particulars | Details | Amount |
| Cash Flow from Operating Activities: | ||
| Net Income | $65,000.00 | |
| Adjustments to reconcile net income to net cash provided by operations: | ||
| Depreciation Expense | $25,000.00 | |
| Increase in accounts receivables | -$85,000.00 | |
| Decrease in current liabilities | -$20,000.00 | |
| Net Cash provided by operating activities | -$15,000.00 | |
| Cash Flow from Investing Activities: | ||
| Sale of Plant asset | $25,000.00 | |
| Net Cash Provided by Investing activities | $25,000.00 | |
| Cash Flow from Financing Activities: | ||
| Proceed from issue of bond | $25,000.00 | |
| Net Cash used in financing activities | $25,000.00 | |
| Net Increase / (Decrease) in Cash | $35,000.00 | |
| Cash balance at beginning of year | $50,000.00 | |
| Cash balance at end of year | $85,000.00 | |
ekkarill92 answered 1 year agoRelated Solutions
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