value 3.00 points Problem 11-2A Basic format for the statement of cash flows (L0

ID: 2534528 • Letter: V

Question

value 3.00 points Problem 11-2A Basic format for the statement of cash flows (L011-2, 11-3) Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s). ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the year ended December 31, 2018 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash Cash at the beginning of the period S 2,685 7,295 Cash at the end of the period s 9,980

Explanation / Answer

Answers

A. Cash Flows from Operating Activity

Net Income

$ 11,500.00

Adjustments

Depreciation expense

$ 5,420.00

Increase in Accounts receivables

$ (4,000.00)

Decrease in Accounts payables

$ (1,715.00)

Decrease in Inventory

$ 1,430.00

Decrease in PP Rent

$ 860.00

$ 1,995.00

Net cash flow from Operating activities

$ 13,495.00

B. Cash flows from Investing Activities

Cash received from sale of land

$ 8,560.00

Purchase of equipments

$ (39,640.00)

Net Cash flows from Investing activities

$ (31,080.00)

C. Cash Flows from Financing activities

Issuance of Common Stock

$ 12,850.00

Issuance of LT Notes payable

$ 16,270.00

payments of dividends

$ (6,280.00)

Purchase of Treasury Stock

$ (2,570.00)

Cash flows from Financing activities

$ 20,270.00

Net Increase (Decrease) in Cash [A+B+C]

$ 2,685.00

Cash at the beginning

$ 7,295.00

Cash at the end

$ 9,980.00