5423396 hey SaleletudhL and Allowane 114060 Net Sales C0 tos

5,423,396 hey, Sale?letudhL) and Allowane 114,060 Net Sales C0% toss Prot 4,86/10 )116416 4,178 4, 120 aplies Expuse. 8,542 22,000 83, 681 1,09%,482 2,685 tion Food will Tmpatiment E 45,08 3, 000 v boss on Mis pose 01 Trucll ?ncouw belore taxes 59.08 6000 3,604 12,604

Solution

ROCKFORD PLUMBING SUPPLY INC. Statement of Cash Flows (Indirect Method) For the Year ended Dec 31, 2018 Cash Flow from opearating activities: Net Income        12,604.00 Add/(Less) non cash effects on operating activities Depreciation expense        22,000.00 Loss on Sale of Truck          3,000.00 Goodwill Impairment          6,000.00 Increase in Accounts Receivables (Net of allowance)       (74,532.00) Increase in Inventory        (3,311.00) Increase in Supplies        (1,360.00) Increase in Accounts Payables        30,750.00 Decrease in Payroll Tax Payable        (2,398.00) Decrease in Income Tax Payable        (1,000.00) Increase in Interest payable        23,261.00          2,410.00 Net Cash provided by operating activities        15,014.00 Cash flow from Investing Activities Purchase of Equipment     (31,100.00) Sale of Truck          8,000.00 Net Cash Flow / (used) from Investing activities     (23,100.00) Cash Flow from Financing Activities Cash paid to Notes Payable        (5,000.00) Borrowed from Bank Line of credit        15,000.00 Cash dividend paid     (50,000.00) Cash Flow from Financing Activities     (40,000.00) Net Increase / (Decrease) in Cash     (48,086.00) Cash balance at the beginning - Dec 31, 2017     280,080.00 Cash balance at the end - Dec 31, 2018     231,994.00 Retained Earnings Particulars Amt Particulars Amt To Cash Dividend (Bal. Fig)          50,000.00 By Balance b/f        326,318.00 To Balance C/f        288,922.00 By Net Income          12,604.00        338,922.00        338,922.00