Using the information below, construct the 2017 Statement of Cash Flows for the

Question

Using the information below, construct the 2017 Statement of Cash Flows for the Ilini Tap. Some of the items may not be used, a few are completed for you as examples, and other it may require intermediate calculations before entering on the CFS Remember, you need to calculate Family Living Withdrawals on the SOE, and then use the same value on the Cash Flow Statement. Record which section each item is recorded on the SCF worksheet (Operating, Investing, or Financing). Note any assumptions that you make in the notes section of the SCF worksheet. Include inflow or outlaw on the notes section Section Notes on CFS 2017 Transactions Land and building purchase 140,000 300,000 110,000 ?m Investing Land Cost Investing Building Cost Financing Remainder financed on 30-year loan Investing Cost of new equipment Financing Remainder financed on 5-year loan Investing Sale prce 25% Cash Down Payment Bar Equipment Purchase 70,000 15,000 ?m Down Payment Sold equipment 10,000 6,000 Tax basis of equipment sold Original cost Current value 50,000 68,000 2,500 Operating Diwdends receved in 2017 e Financing Principal paid on short-term loans 10,000 1,500 f Operating Interest paid on short-term loans 9 Operating Family Living Withdrawals h Operating Total Cash Sales i Financing Principal paid on long-term loans j Imesting Transfer from mutual funds to checking/cash18,000 k Operating Total Cash Operating Expenses I Operating Interest paid on long-term loans in cash m Operating Cash Tax Expenses n Investing Deposit to Sawings Account 7m 910,000 Operating inflow 13,000 660,000 Operating outflow 15,000 67,000 25,000 15,000 o Financi Cash received from short tem loans Other Beginning Cash Balance 35,000 Begnning Cash Balance

Explanation / Answer

Section on CFS 2017 Transactions Notes a Land and building purchase Investing Land cost 140,000 Investing outflow Investing Building Cost 300,000 Investing outflow 25% cash down payment 110,000 Financing Remainder financed on 30 year loan 330,000 Financing inflow, balance 75% b Bar equipment purchase Investing Cost of new equipment 70,000 Investing outflow Down payment 15,000 Financing Remainder financed on 5 year loan 55,000 Financing inflow, balance after down payment c Sold equipment Investing Sale price 10,000 Investing inflow Tax basis of equipment sold 6,000 d Investment in local brewery Original cost 50,000 Current value 68,000 Operating Dividend received in 2017 2,500 Operating inflow Other items e Financing Principal paid on short term loan 10,000 Financing outflow f Operating Interest paid on short term loan 1,500 Operating outflow g Operating Family Living Withdrawal 144,000 Financing outflow, figure came from beginning cash balance + total inflow - total outflow h Operating Total cash sales 910,000 Operating inflow i Financing Principal paid on long term loan 13,000 Financing outflow j Investing Transfer from mutual fund to checking/cash 18,000 Investing inflow k Operating Total cash operating expenses 660,000 Operating outflow l Operating Interest paid on long term loan in cash 15,000 Operating outflow m Operating Csah Tax Expenses 67,000 Operating outflow n Investing Deposit to saving account 25,000 No cash outflow as it is a cash equivalent o Financing Cash received from short term loans 15,000 Financing inflow Other: Beginning cash balance 35,000 Beginning cash balance It is assumed that there are no ending cash balance except deposits in saving account.

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