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I need a Statements of Cash Flows given the following Liberty Cleaning Company L

ID: 2583029 • Letter: I

Question

I need a Statements of Cash Flows given the following

Liberty Cleaning Company LLC Pro Forma Consolidated Cash Flow

Liberty Cleaning Company LLC Pro Forma Consolidated Income Statement Year Ended December 31 2018 2019 2020 2021 2022 Net Sales Gross Profit 7090 500 5 7532.0705794-494 5844265 5 893874 844,265 $ 893,873 844,265 709,500 752,070 794,494 893,873 473,000 473,000 473,000 579,000 635,000 Payroll Taxes 42,570 37,620 42,570 37,620 42,570 37,620 52,110 37,620 37,620 Utilities Supplies Insurance (Bonding and Vehicles) 12,000 5,850 46,500 42,500 30,000 11,700 702,240 15,000 5,850 15,000 5,850 46,500 30,206 30,000 11,700 808,486 5,850 5,850 30,000 11,700 689,946 30,000 11,700 692,946 30,000 11,700 869,526 Total Expenses Net Income 7,260 62,124 101,548 35,779 24,347

Explanation / Answer

Liberty cleaning company LLC consolidated Statement of cash flow (Indirect method)

2018

2019

2020

2021

2022

Cash position at start

0

484,260

576,384

707,932

773,711

Operation Cash flow

   Income from sales

709,500

752,070

794,494

844,265

893,873

Total in

709,500

752,070

794,494

844,265

893,873

   Expences

672,240

659,946

662,946

778,486

839,526

Total out

672,240

659,946

662,946

778,486

839,526

CP before investment and financial activities

37,260

576,384

707,932

773,711

828,058

Investment cash flow

Total in

-

-

-

-

-

   PPE purchase

153,000

Total out

153,000

-

-

-

-

CP before financing activities

-115,740

576,384

707,932

773,711

828,058

Finance cash flow

   Loan proceed

   Eqity capital incestment

180,000

420,000

Total in

600,000

Total out

-

-

-

-

-

Total cash flow

484,260

92,124

131,548

65,779

54,347

Cash position at end

484,260

576,384

707,932

773,711

828,058

There is other method also called direct method. However in here i use indirect method to prepare cash flow statement.

Liberty cleaning LLC statement of cash flow (direct method)

2018

2019

2020

2021

2022

Profit before tax (net income+pay roll tax)

49,230

104,094

143,518

87,289

80,897

Adjustment for :

     Depreciation

     Interest

30,600

11,700

30,600

11,700

30,600

11,700

30,600

11,700

30,600

11,700

Cash from operation before working capital changes   

91,530

146,394

185,818

129,589

123,197

Working capital changes

-

-

-

-

-

Cash generation from operation

     Interest paid

     Tax paid

-11,700

-42,570

-11,700

-42,570

-11,700

-42,570

-11,700

-52,110

-11,700

-57,150

Net cash from operating activities

37,260

92,124

131,548

65,779

54,347

Purchase of PPE

-153,000

Net cash from investing activities

-153,000

Loan proceed

Equity capital investment

180,000

420,000

Net cash from financing activities

600,000

Net increase of decrease in cash flow

484,260

92,124

131,548

65,779

54,347

Cash @ beginning period

0

484,260

576,384

707,932

773,711

Cash @ ending period

484,260

576,384

707,932

773,711

828,058

2018

2019

2020

2021

2022

Cash position at start

0

484,260

576,384

707,932

773,711

Operation Cash flow

   Income from sales

709,500

752,070

794,494

844,265

893,873

Total in

709,500

752,070

794,494

844,265

893,873

   Expences

672,240

659,946

662,946

778,486

839,526

Total out

672,240

659,946

662,946

778,486

839,526

CP before investment and financial activities

37,260

576,384

707,932

773,711

828,058

Investment cash flow

Total in

-

-

-

-

-

   PPE purchase

153,000

Total out

153,000

-

-

-

-

CP before financing activities

-115,740

576,384

707,932

773,711

828,058

Finance cash flow

   Loan proceed

   Eqity capital incestment

180,000

420,000

Total in

600,000

Total out

-

-

-

-

-

Total cash flow

484,260

92,124

131,548

65,779

54,347

Cash position at end

484,260

576,384

707,932

773,711

828,058

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