Create a complete cash flow statement using the indirect method. Balance sheets

Question

Create a complete cash flow statement using the indirect method.

Balance sheets Income statement, 2018 2017 Sales revenue Cost of goods sold Gross proflt Operating expenses Advertising expense Utilities expense Depreciation expense Operating income Other items 2018 743,000,000 610,000,000 133,000,000 Assets Cash Accounts recelvable Investments Inventory Equipment Accumulated depreciation Land Trademarks (non-current asset) Total assets Liabilities+stockholders'equity Accounts payable Unearned revenue Interest payable Notes payable Total liabilities Common stock Retained earnings Total liabilities+stockholders'equity 98,700,000 45,000,000 19,300,000 17,500,000 40,000,000 50,000,000 78,000,000 78,000,000 100,000,000 100,000,000 (38,000,000) (35,000,000) 150,000,000 120,000,000 20,000,000 18,000,000 468,000,000 393,500,000 32,000,000 23,000,000 3,000,000 75,000,000 Gain on sale of investments Interest expense Pretax income Income taxes Net income 8,000,000 10,000,000) 73,000,000 25,500,000 47,500,000 40,000,000 46,000,000 4,000,000 3,000,000 110,000,000 80,000,000 155,000,000 133,000,000 110,000,000 90,000,000 203,000,000 170,500,000 468,000,000 393,500,000 5,000,000 15,000,000 Cash dividends declared and paid in 2018 30,000,000 worth of land was financed through the issuance of a note payable, and no cash was exchanged Create a complete cash flow statement using the indirect method

Explanation / Answer

Company Name Statement of Cash flows For the year 2018 Cash flows from operating activiites: Net income     47,500,000 Adjustments to reconcile net income to net cash provided by (used for) operating activities Add: Depreciation Expense        3,000,000 Less: Increase in Accounts receivable       (1,800,000) Less: Decrease in Accounts Payable       (6,000,000) Add: Increase in Unearned Revenue        1,000,000     (3,800,000) Net cash provided by (used for) operating activities     43,700,000 Cash flow from Investing activities: Sale of Investments      10,000,000 Acquistion of trademarks       (2,000,000) Net cash provided by (used for) investing activities      8,000,000 Cash flows from Financing financing activities: Cash received on issue of common stock      20,000,000 Interest Paid       (3,000,000) Cash Dividends Paid     (15,000,000) Net cash provided by(used for ) financing activities      2,000,000 Net increase (decrease) in cash     53,700,000 Cash balance at Beginning of the year 2018     45,000,000 Cash balance at Ending of the year 2018     98,700,000

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