. Jesse Corporation reported the following information for the current year: (1)

Question

. Jesse Corporation reported the following information for the current year: (1) Net income is $205 million. (2) Acquisitions were $32 million. (3) Customer accounts receivable increased by $12 million. (4) Dividends paid to common shareholders were $8 million. (5) Depreciation expense was $41 million. (6) Income tax payable decreased by $11 million. (7) Long-term debt increased by $28 million. (8) Accounts payable decreased by $6 million. (9) Inventories increased by $17 million. Required: Based on the above information, calculate the following items: Cash flow from operating activities. Cash flow from investing activities. Cash flow from financing activities. The increase or decrease in the cash balance.

Explanation / Answer

Statement of Cash Flows Year Cash flows from operating activities Net Income            205.00 Adjustments for: Depreciation   41 Working capital changes: (Increase) in account Receivable            (12.00) (Increase) in inventories            (17.00) (Decrease) in Accounts Payable              (6.00) (Decrease) in Income Tax Payable            (11.00) Net cash from operating activities            200.00 Cash flows from investing activities Acqusitions -32 Net cash used in investing activities            (32.00) Cash flows from financing activities Increase in long Term debt 28 Payment of Dividend -8 Net cash used in financing activities              20.00 Net increase in cash and cash equivalents           188.00

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