C eztcmheducationcomhmtpx Duing a recent year Nicols Get

? > C | ? eztc.mheducation.com..hmtpx Duing a recent year, Nicol\'s Getawa Spa NG31 repcrted nat Income or 32,500. The company raported he lowing acaviles Increase in invenbary of $440 b. Depreciaticn of S3400 c Increase nc $?7101n prepard expenses d. Paymens of s5,0co on leng term debt Paymets on accounts peyable exceeced purchases by 3300 Collectians on accounts recovabic ccoded credit salcs by $300 . Issued S11000 of omon steck. Required: Based on this Information, prepare a statemant of cash ows for the year ended December 31 using the rndirect melhod. Assume the cash talance at the tegnning t he yer was $4 (Amounts to be deducted should be indicated with a minus sign. COLE\'S GETAWAY SPA Statement of Cash Flow Casn Flows from Cperaing Actvites Cash Flow ram Investing Artvhrs Cash Flow-from Financing Actitles O lype hene to search

Solution

Cash flow Statement Cash flows from operating activities: Net income for the year 2500 Adjustment for the reconciliation Depreciation 3400 Decrease in Accounts receivable 890 Increase in inventory -440 Decrease n Accounts payab;e -300 Incnrease in Prepaid expense -2210 Net cash provided from operating activities 3840 Cash flows from Investing activities: Purchase of equipment -7622 Net cash used in investing activities -7622 Cash flows from financing activities; Issue of shares 11000 Long term debts -5000 Net cash used in financing activities 6000 Net Increase in cash 2218 Cash balance in beginning 7400 Ending cash balance. 9618