On the basis of the following data for Breach Co. for the current and preceding years...

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On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach Co. Stat

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Answer 1

Answer #1

Breach Co.
Statement of Cash Flows
For Year Ended December 31
I. Cash flow from Operating Activities
Net income	76,000
Add: Adjustments to reconcile net income to net cash provided by operating activities
Depreciation on equipment	37,000
Changes in current operating assets and liabilities:
Accounts receivable decrease	7,000
Inventory increase	-16,500
Accounts payable increase	1,000
tax payable decrease	-2,500
Net cash provided by Operating Activities		102,000
II. Cash flow from Investing Activities
Purchase of equipment	-25,000
Net cash used in Investing Activities		-25,000
III. Cash flow from Financing Activities
Issue of common stock	32,000
Dividend paid	-13,000
Net cash provided by Financing Activities		19,000
Net increase in Cash and Cash Equivalents(I +II +III)		96,000
Add: Cash in the beginning of the year		74,000
Cash at the end of the year		170,000

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