Ive been tasked with creating a cash flow statement for the below balance sheet
ID: 2330853 • Letter: I
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
Explanation / Answer
Property, Plant and Equipment:
Accumulated Depreciation:
Asset Disposal:
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 25,000Related Questions
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