Question

Ive been tasked with creating a cash flow statement for the below balance sheet item and profit and loss items, I've finished it on my own but the operating activities im not too sure on;

Balance sheet;

ASSETS 2018 2019
cash 33400 25000
A/C Rec 37000 61060
Consultation service Receivable 1000 2000
Inventory 102650 121900
Prepaid Insurance 9500 6500
Land 107000 84500
Property, plant & equipment 205000 310000
Accum Dep'n - PP&E (40000) (46500)

LIABILITIES & EQUITY
A/c paybale 48280 62700
interest pay 18800 12500
income tax pay 1000 2000
other expenses pay 13500 15000
debentures pay 246870 275000
share cap 78100 135600
retained earnings 49000 61660

PROFIT & LOSS
sales 197000
less: cost of sales (99460)
GROSS profit 97540
add: other income
consultation services receivable 20500
gain on sale of plant & equipment 5000 25500
123040
less: expenses
interest expense 2940
income tax exp 7270
other operating exp 50170 (60380)

Profit   62660

property plant and equipment costing 141000 was purchased during year
PP&E sold for 36000 during year
35500 dep'n expense on PP&E durong year

if someone could help with the workings for operating activities and investing activities that would be great, also unsure if im to add consultation services receivable to accounts receivable aswell. im using T-accounts for my workings. thanks

Answer 1

Statement of Cash Flows
For the year ended December 31, 2019
	$	$
Net Income		62,660
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation expense	35,500
Interest Expense	2,940
Gain on Sale of Plant and Equipment	(5,000)
Increase in Accounts Receivable	(24,060)
Increase in Consutancy Service Receivable	(1,000)
Increase in Inventory	(19,250)
Decrease in Prepaid Expenses	3,000
Increase in Accounts Payable	14,420
Increase in Income Tax Payable	1,000
Increase in Other Expenses Payable	1,500	9,050
Net cash flows from Operating Activities		71,710
Cash Flows from Investing Activities
Proceeds from sale of Equipment	12,000
Proceeds from sale of Land	22,500
Cash paid for acquisition of Equipment	(141,000)
Net cash used in Investing Activities		(106,500)
Cash Flows from Financing Activities
Proceeds from issuance of Shares	57,500
Proceeds from issuance of Debentures	28,130
Interest paid	(9,240)
Dividends paid	(50,000)
Net cash flows from Financing Activities		26,390
Net decrease in cash		(8,400)
Beginning cash balance		33,400
Ending cash balance		25,000

Property, Plant and Equipment:

Beginning bal.	205,000	Asset Disposal	36,000
Purchase	141,000
Ending bal.	310,000

Accumulated Depreciation:

Asset Disposal	29,000	Beginning bal.	40,000
		Depreciation Expense	35,500
		Ending bal.	46,500

Asset Disposal:

Property Plant and Equipment	36,000	Accumulated Depreciation	29,000
Gain on Sale	5,000	Cash	12,000
	41,000		41,000