Question

Prepare a Satement of Cash Flow for the current year usinf the indirect method.

Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash Accounts Receivable, net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $ $ $ $ $ $ 65,000 150,000 135,000 9,700 30,000 389,700 $ $ $ $ $ $ 80,000 100,000 70,000 500 10,000 260,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, plant, and Equipment Total Assets $ $ $ $ 500,000 (80,000) 420,000 809,700 $ $ $ $ 240,000 190,000) 150,000 410,500 4 Page

Answer 1

		CASH FLOW STATEMENT
	A	Cash flows from operating activities
		Net income	$55,500
		Adjustments for non-cash effects:
		Depreciation expense	$20,000
		Loss from sale of equipment	$5,213
		Adjustments to reconcile net income cash
		Increase in Account receivable	-$50,000					equipment
		Increase in merchandise inventory	-$65,000			Beg. Bal.	$150,000	Depreciation	$20,000
		Increase in Supplies	-$9,200			note payable	$130,000	Cash	$84,787
		Increase in prepaid insurance	-$20,000					loss on sale	$5,213
		Increase in Account payable	$110,000			Cash(purchase)	$250,000	Ending bal.	$420,000
		Decrease in unearned revenue	-$10,000				$530,000		$530,000
		Increase in salaries payable	$10,000
		Net cash inflow from operating activities	$46,513
	B	Cash flows from investing activities
		Purchase of equipment	-$250,000
		Sale of equipment	$84,787
		Net cash ouflow from investing	-$165,213
	C	Cash flows from financing activities
		Common stock issued	$113,700
		Dividend paid	-$10,000
		Net cash inflow from financing activities	$103,700
		Net decrease in cash $	-$15,000
		Cash at beginning of year	$80,000
		Cash at end of year	$65,000