Question

2020 2019 Assets Current Assets Cash Accounts receivable Inventory Prepaid expenses 285,000 334,000 306,000 55,000 980,000 305,000 384,000 256,000 35,000 980,000 Total current assets $ $ Fixed (Long-Term) Assets Property, plant, and equipment (Less accumulated depreciation) Total fixed assets $ $ 650,000 (165,000) 485,000 1,465,000 $ $ 590,000 (130,000) 460,000 1,440,000 Total Assets 60,000 15,000 50,000 55,000 180,000 50,000 20,000 25,000 45,000 140,000 $ Liabilities and Owner's Equity Current Liabilities Accounts payable Wages Payable Uneared revenue Income taxes payable Total current liabilities $ Long-Term Liabilities Bonds payable Total long-term liabilities $ Owner's Equity Common shares Retained earnings Other Total owner's equity $ 490,000 490,000 575,000 575,000 $ 365,000 430,000 285,000 440,000 795,000 $ 725,000 1,465,000 $ 1,440,000 Total Liabilities and Owner's Equity $

Net income is $522,000

Please create a statement of cash flow

Answer 1

Dividend paid = Beginning retained earnings+Net income-Ending retained earnings

Dividend paid = $440,000+522,000-430,000 = $532,000

Statement of Cash Flow
Cash flow from operating activities:
Net income	$522,000
Adjustments to reconcile net income
Depreciation expense	$35,000
Accounts receivable	50,000
Inventory	(50,000)
Prepaid expenses	(20,000)
Accounts payable	10,000
Wages payable	(5,000)
Unearned revenue	25,000
Income tax payable	10,000
Net cash flow from operating activities		$577,000
Cash flow from investing activties:
Property,plant and equipment	(60,000)
Net cash flow from investing activities		(60,000)
Cash flow from financing activities:
Common shares	80,000
Bonds payable	(85,000)
Dividend paid	(532,000)
Net cash flow from financing activities		(537,000)
Net increase or (decrease) in cash		(20,000)
Beginning cash balance		305,000
Ending cash balance		$285,000