Based on the financial statements provided, prepare a statement of cash flows fo

Question

Based on the financial statements provided, prepare a statement of cash flows for the year ended February 28, 2018.

SILVER CLOUD COMPUTING Income Statements For the Years Ended February 28, 2018 and 2017 fye 2/28/2018 fye 2/28/2017 (in thousands) (in thousands) Sales $            225,000 $            200,000 Sales Discounts                     3,375                     2,500 Net Sales                221,625                197,500 Wages and Salaries                  73,500                  70,000 Bad Debt Expense                     2,100                     2,000 Depreciation                  20,000                  20,000 Marketing Expense                  33,750                  30,000 Occupancy Expense                  54,000                  54,000 Research & Development                  22,500                  20,000 Total Expenses                205,850                196,000 Income from Operations                  15,775                     1,500 Interest Expense                     1,200                     1,200 Income Before Taxes                  14,575                        300 Income Taxes (40%)                     5,830                        120 Net Income $                8,745 $                    180

Explanation / Answer

CASH FLOW STATEMENT 2018 2017 Cash flows from operating activities Profit before taxation 14,575.00          300.00 Adjustments for: Depreciation 20,000.00     20,000.00 Investment income               -                   -   Interest expense     1,200.00       1,200.00 Profit / (Loss) on the sale of property, plant & equipment               -                   -   Working capital changes: (Increase) / Decrease in trade and other receivables (2,000.00) (16,000.00) (Increase) / (Decrease) in inventories               -                   -   Increase / (Decrease) in trade payables     6,710.00       8,120.00 Cash generated from operations 40,485.00     13,620.00 Interest paid (1,200.00)    (1,200.00) Income taxes paid (5,830.00)       (120.00) Dividends paid               -                   -   Net cash from operating activities 33,455.00     12,300.00 Cash flows from investing activities Business acquisitions, net of cash acquired               -                   -   Purchase of property, plant and equipment               -                   -   Proceeds from sale of equipment               -                   -   Acquisition of portfolio investments               -                   -   Investment income               -                   -   Net cash used in investing activities               -                   -   Cash flows from financing activities Proceeds from issue of share capital               -                   -   Proceeds from long-term borrowings               -                   -   Payment of long-term borrowings               -                   -   Net cash used in financing activities               -                   -   Net increase in cash and cash equivalents 33,455.00     12,300.00 Cash and cash equivalents at beginning of period 22,300.00     10,000.00 Cash and cash equivalents at end of period 55,755.00     22,300.00 Cash Balance Control Total               -                   -

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