What would the statement of cash flows be with the following information below?

Question

What would the statement of cash flows be with the following information below?

year ended 12/31/13

Net income for the year 2013 was $5000.00. Accounts receivable decreased $2000.00, inventories increased $4000.00, accounts payable decreased $7000, depreciation expense included in net income was $8000.00. Land was sold for book value of $8000.00 and a new truck was purchased for $14000.00. company borrowed $18,000 on a two year bank note. dividends of $6000 were paid in cash. Preferred stock issued to retire $7000 of long term notes payable. Beginning cash balance was $22,000.00 and ending balance was $32,000.00

Explanation / Answer

cash flow statement

total additions

particulars amount amount begining cash flow $ 22,000 add: net income $ 5,000 add : accounts receivable decreased $ 2,000 add : depreciation expenses increased in net income $ 8,000 add: land was sold $ 8000 add : company borrowed a two year bank note $ 18,000

total additions

$ 41,000 less: inventories increased $ 4,000 less : accounts payable decreased $ 7,000 less : new truck was purchased $ 14,000 less : dividend paid $ 6,000 total deductions $( 31,000) closing cash balance $ 32,000

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