Question

LARKSPUR INC. Statement of Cash Flows For the Year Ended December 31, 2017 The comparative balance sheets of Larkspur Inc, at the beginning and the end of the year 2017 are as follows. Adjustments to reconcile net inoome to LARKSPUR INC. BALANCE SHEETS Dec. 31, 2017 Jan. 1, 2017 Inc./Dec. Assets Cash Accounts receivable Equipment Less: Accumulated Depreciation-Equipment S 46,760 94,360 42,360 20,360 $163,120 $14,760 89,600 23,600 11,000 $116,960 $32,000 Inc. 4,760 Inc. 1B,760 Inc 9,360 Inc Total Accounts payable Common stock Retained earnings $23,360 101,760 38,000 $163,120 16,600 81,600 18,760 $116,960 6,760 Inc. 20,160 Inc. 19,240 Inc. Total Net income of $47,360 was reported, and dividends of $28,120 were paid in 2017 New equipment was purchased and none was sold Prepare a statement of cash flows for the year 2017 (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g (15,000)

Answer 1

Statement of Cash flow

Cash flow from operating activities
Net income		47360
Adjustment to reconcile net income to
net Cash flow from operating activities
Depreciation expense	9360
Increase account receivable	-4760
Increase account payable	6760
		11360
Net Cash flow from operating activities		58720
Cash flow from investing activities
Equipment purchase		-18760
Cash flow from financing activities
Issue common Stock	20160
Dividend paid	-28120
Net Cash used in financing activities		-7960
Net Cash flow		32000
Beginning Cash		14760
Ending Cash		46760