points reffect cash are paid in ive Balance 51000 Iotal asse

points reffect cash are paid in ive Balance 51,000 Iotal assets 8, 000 notes payable Common tock\' ?5 par value 182,750160,2s0 47, 500 to search

Solution

Cash flow Statement Cash flows form operating activities: Net income for the year 110975 Adjustment required for rreconciliation Depreciation expense 30750 Loss on sale of equipment 15125 Increase in Accounts recevable -20245 Increase in Inventory -28856 Decrease in Prepaid expense 785 Decrease in Accounts payable -66534 Net cash provided from operating activities 42000 Cash flowws from Investing activities Purchase of equipment -50000 Sale of equipment 21625 Net cash used in investing activities -28375 Cash flows from Financing activities Borrowings from Short term notes payable 5000 Repayment of bonds -55125 Issue of shares 70000 Dividend paid -52100 Net cash used in Financing activities -32225 Net decrease in cash -18600 Beginning Balance of cash 83500 Ending balance of cash 64900