Question

Based on the financial statements provided, prepare a statement of cash flows for the year ended February 28, 2018.

SILVER CLOUD COMPUTING
Income Statements
For the Years Ended February 28, 2018 and 2017
		fye 2/28/2018		fye 2/28/2017
		(in thousands)		(in thousands)
Sales		$            225,000		$            200,000
Sales Discounts		3,375		2,500
Net Sales		221,625		197,500
Wages and Salaries		73,500		70,000
Bad Debt Expense		2,100		2,000
Depreciation		20,000		20,000
Marketing Expense		33,750		30,000
Occupancy Expense		54,000		54,000
Research & Development		22,500		20,000
Total Expenses		205,850		196,000
Income from Operations		15,775		1,500
Interest Expense		1,200		1,200
Income Before Taxes		14,575		300
Income Taxes (40%)		5,830		120
Net Income		$                8,745		$                    180

SILVER CLOUD COMPUTING
Balance Sheets
February 28, 2018 and 2017 and February 29, 2016
							At Inception
			Feb 28 2018		Feb 28 2017		Feb 29 2016
			(in thousands)		(in thousands)		(in thousands)
Cash			$              55,755		$       22,300.00		$        10,000
Accounts Receivable			18,000		16,000		-
Net Computer Equipment			20,000		40,000		60,000
Total Assets			$              93,755		$             78,300		$        70,000
Accounts Payable			$                9,000		$               8,000		$                  -
Taxes Payable			5,830		120		-
Long-term Debt			30,000		30,000		30,000
Common Stock			40,000		40,000		40,000
Retained Earnings			8,925		180		-
Total Liabilities & Stockholders Equity			$              93,755		$             78,300		$        70,000

Answer 1

CASH FLOW STATEMENT 2018 2017 Cash flows from operating activities Profit before taxation 14,575.00          300.00 Adjustments for: Depreciation 20,000.00     20,000.00 Investment income               -                   -   Interest expense     1,200.00       1,200.00 Profit / (Loss) on the sale of property, plant & equipment               -                   -   Working capital changes: (Increase) / Decrease in trade and other receivables (2,000.00) (16,000.00) (Increase) / (Decrease) in inventories               -                   -   Increase / (Decrease) in trade payables     6,710.00       8,120.00 Cash generated from operations 40,485.00     13,620.00 Interest paid (1,200.00)    (1,200.00) Income taxes paid (5,830.00)       (120.00) Dividends paid               -                   -   Net cash from operating activities 33,455.00     12,300.00 Cash flows from investing activities Business acquisitions, net of cash acquired               -                   -   Purchase of property, plant and equipment               -                   -   Proceeds from sale of equipment               -                   -   Acquisition of portfolio investments               -                   -   Investment income               -                   -   Net cash used in investing activities               -                   -   Cash flows from financing activities Proceeds from issue of share capital               -                   -   Proceeds from long-term borrowings               -                   -   Payment of long-term borrowings               -                   -   Net cash used in financing activities               -                   -   Net increase in cash and cash equivalents 33,455.00     12,300.00 Cash and cash equivalents at beginning of period 22,300.00     10,000.00 Cash and cash equivalents at end of period 55,755.00     22,300.00 Cash Balance Control Total               -                   -