Exercise 12-5 The following information is available for Ivanhoe Company for the

Question

Exercise 12-5 The following information is available for Ivanhoe Company for the year ended December 31, 2017. Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds $ 49,635 4,081 178,686 9,045 12,133 313,362 38,605 13,236 5,184 318,767 28,678 220,600

Explanation / Answer

Cash Flow Statement Particulars Amount Net Income     313,362.00 Add: Depreciation     178,686.00 cash flow after considering non cash items     492,048.00 Add: Increase in income tax payable           5,184.00 Less: Decrease in account payable         (4,081.00) Less: Increase in account receivables         (9,045.00) Less: Increase in inventory      (12,133.00) Cash generated from operating activities (A)     492,048.00 Sale of Land         38,605.00 Purchase of Building    (318,767.00) Cash generated from Investing activities (B) (280,162.00) Dividend Paid      (13,236.00) Treasury stock purchased      (28,678.00) Bonds Issued      220,600.00 Cash generated from Investing activities (C)     178,686.00 Total Cash generated from all activities (A + B+ C)     390,572.00 Add: Opening Cash        49,635.00 Closing Cash Balance     440,207.00

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