Question

Create Statement of Cash Flows for 2xx2 Do CASH FLOW Statement Class Company, Inc. SS Assets: Current Assets: Cash Accounts Receivable Prepaid Expenses Other Current Assets Total Current Assets: Balance Sheet as of 12/31/2xxl 12/31/2xx2 Ss 440,000 892,100 322,000 402,000 30,000 52,000 15,000 26.000 807,000 1,372,100 Plant Property & Equipment Accumulated Depreciation Net Plant Property & Equipment 1,000,000 410,000 590,000 1,300,000 470,000 830,000 Amortization here Other Non-Current Assets: Intangibles Deferred Loan Placement Costs Other Non-Current assets Total Other Non-Current Assets 395,000 25,000 24,000 444,000 365,000 25,000 13,000 403,000 Total Assets 1841.000 2.605.100 Liabilities: Current Liabilities Accounts Payable Accrued Expenses Current Portion of LT debt Other Current Liabilities Total Current Liabilities 135,000 60,000 70,000 40,000 305,000 160,000 50,000 80,000 250,000 540,000 Non-Current Liabilities Long Term Debt Deferred Income Taxes Other Non-current Liabilities Total Non-Current Liabilities 1,300,000 90,000 20,000 1,410,000 1,400,000 92,000 26,000 1,518,000 Total Liabilities 1715.000 2.058.000 100 Owners Equity Common Stock @ par = $0.01 Additional Paid-in Capital Dividends Retained Earnings Total Owners' Equity 100 99,900 0 26.000 126.000 200,000 100,000 447 000 547.100 Total Liabilities and Owners Equity 1,841,000 2,605,100 USE THIS SIUFF Note: in this example we have intangibles - which is also a non-cash charge to income like depreciation - so we add that Amtzn back to net income just like deprecation: No addition to Intangibles Asset sale see Other Expense Long term Debt repaid = $ $325,000 there were Sale of shares Class Company, Inc. Statement of Income Period Ending 12/31/2xx2 SS 4,000,000 SS 100.0% Revenue Cost of Goods Sold 2,113,000 52.8% Gross Profit 1,887,000 47.2% Operating Expenses: Total Operating Expenses 951,000 23.8% Operating Income 936,000 23.4% Other Expense (NBV - 520000, 524000, 516000) (4,000) -0.1% NBV Orig. Cost Sold for 20,000 Compute 24,000 AD LAD - Accumulated Depreciation 16.00 Income Before Taxes 932,000 23.3% Provision for Income Taxes 511,000 12.8% Net Income 421000 10.5%

Answer 1

Class Company Inc. Cash flow Statement For the period ending December 31, 2XX9 (Indirect method) Details $ Amount 421,000 Particulars Cash flows from operating Activities Net Income Add Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Patent Amortization Loss on Sale of Assets Increase in Accounts receivable Increase in Prepaid expenses Increase in other current assets Increase in Accounts Payable Decrease in Accrued expenses Increase in current portion of LT debt Increase in other current liabilities Net Cash provided by Operating Activities 64,000 30,000 4,000 (80,000) (22,000) (11,000) 25,000 (10,000) 10,000 210,000 220,000 641,000

Cash Flows from Investing Activities Sale of Assets Purchase of Plant Property & Equipment urchase of other Non-Current Assets Net cash used by Investing Activities 16,000 (300,000) (13,000) (297,000) Cash Flows from Financing Activities Increase in Deferred Income Taxes Increase in Other Non-Current Liabilities Issuance of LT debt Repayment of LT debt Issue of Common Stock Payment of Dividend Net cash used by Financing Activities Net Change in Cash Add Opening Balance of Cash Closing Balance of Cash 2,000 6,000 425,000 (325,000) 100,100 (100,000) 108,100 452,100 440,000 892,100