connect. s window shows what is correct and incorrect for the work you heve comp

Question

connect. s window shows what is correct and incorrect for the work you heve completed so fer en if all of the work you have done so far is correct, you may not have completed everything. 2. M12-5 Computing Cash Flows from Operating Activities (Indirect Method) ILO 12-2) The two independent cases are listed below Case A Case B Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Year 2 Year1 Year 2 Year 1 $ 11,300 $10,500 $21,300 $ 19,500 6,270 7,000 12,270 12,170 5,030 3,500 9,030 7.330 1,000 1,000 1,650 1,650 5,300 5.300 1,830 800 2,080 380 2,200 1,700 Accounts Receivable Inventory Accounts Payable Salaries andWages Payable.._ 1,015 315 765 530 745 830 830 430 715 1,230 780 615 830 215,280 895 830 530 780 Show the operating activities section of the statement of cash flows for year 2 using the indirect method (Amounts to be deducted should be indicated with a minus sign) Answer is complete but not entirely correct. Case B s 1,830 $ 2,080 Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities 1,0001,650 Depreciation Expense Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable 115(165) (235:01-850 1150 (65) 3,040 3,520 Net Cash used in Operating Activities

Explanation / Answer

Answer = 1 A) Cash flows from operating activities CASE A   CASE B Net Income $                1,830 $                2,080 Adjustments for: Depreciation $                1,000 $                1,650 Adjustement for increase and decrease in Assets & Liabilities Account Receivable $                   115 $                  -165 Inventory $                  -235 $                      85 Account Payable $                   115 $                    -65 Salary and wages Payable $                  -215 $                    -65 Cash flows from investing activities $                2,610 $                3,520 Answer = 2 Year Cash invesmtent amount Interest @ 8% Per Annum Cumulative Cash Flow 1 6400 $                   512 $                6,912 2 $             552.96 $                7,465 3 $             597.20 $                8,062 4 $             644.97 $                8,707 5 $             696.57 $                9,404 6 $             752.30 $             10,156 7 $             812.48 $             10,968 8 $             877.48 $             11,846 9 $             947.68 $             12,794 10 $          1,023.49 $             13,817 Answer = Future Value at the end of 10th year = $ 13,817

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