Hello I really need some help creating a statement of cashfl

Hello, I really need some help creating a statement of cashflows. I have two balance sheets, one from February and one from March, and I\'m having difficulty creating a statement of cash flows for the business, Grandpa\'s Cough Inc..

The Balance Sheet for February:

Assets: Cash (16684), Accounts Receivable (20,000), Allowance for Doubtful Accounts (-4,000), Inventory (50,000), Prepaid Insurance (1,400), Prepaid Rent (3,300), Office Equipment (2,400), Mixing Barrels (7,200), Factory Equipment (21,600), Less: Accumulated Depreciation (-8,940)

Liabilities: Accounts Payable (20,000), Income Taxes Payable (12,000), Interest Payable (44), Current Portion of Long-Term Debt (1,600), Notes payable (16,000), Retained Earnings (40,000), Common Stock (20,000)

The Balance Sheet for March:

Assets: Cash (70,129), Accounts Receivable (75,000), Allowance for Doubtful Accounts (-15,000), Inventory (74,400), Prepaid Insurance (8,750), Prepaid Rent (4,450), Prepaid Advertising - this is a new account - (9,000), Office Equipment (8,160), Mixing Barrels (10,200), Factory Equipment (25,200), Less: Accumulated Depreciation (-9,895)

Liabilities: Accounts Payable (72,000), Income Taxes Payable (32,384), Interest Payable (88), Current Portion of Long-Term Debt (0), Notes Payable (17,600), Retained Earnings (87,562), Common Stock (50,760).

Other possibly important accounts: Net Income for March (47, 562), Depreciation Expense (955), Bad debt expense (26, 000).

There was no sale of any assets during the period!

Thank you, in advance, for your help. :)

Solution

Statement of Cash Flows Particulars March Cash flows from operating activities Profit before taxation        47,562 Adjustments for: Depreciation             955 Working capital changes: (Increase) / Decrease in trade and other receivables      (44,000) (Increase) / Decrease in prepaid insurance        (7,350) (Increase) / Decrease in prepaid rent        (1,150) (Increase) / Decrease in prepaid advertising        (9,000) (Increase) / (Decrease) in inventories      (24,400) Increase / (Decrease) in trade payables        52,000 Increase / (Decrease) in income tax payable        20,384 Increase / (Decrease) in interest payable               44 Cash generated from operations        35,045 Interest paid Income taxes paid Dividends paid Net cash from operating activities        35,045 Cash flows from investing activities Business acquisitions, net of cash acquired               -   Purchase of property, plant and equipment      (12,360) Proceeds from sale of equipment               -   Acquisition of portfolio investments               -   Investment income               -   Net cash used in investing activities      (12,360) Cash flows from financing activities Proceeds from issue of share capital        30,760 Proceeds from long-term borrowings          1,600 Payment of long-term borrowings        (1,600) Net cash from financing activities        30,760 Net increase in cash and cash equivalents        53,445 Cash and cash equivalents at beginning of period        16,684 Cash and cash equivalents at end of period        70,129