Question

Please prepare statement of cash flows and answer the category sections. Thank you

PART Il Flower Company Balance Sheet For Year Ended 12/31 Statement of Cash Flows (60%) Complete on the next page: ASSETS CATEGORY 2018 2017 (Decrease) 91,830 21,750 58,000 r 169,500)nestis Cash 58,250 107,000 85,000 Accounts receivable Inventory Long Term Investment (1) Land (2) 80,000 165,000 15,500 1,250,000 1,125,000 125,000 0 50,000 (50,000) Equipment (3) (572,000) (28,000 Accumulated depreciation (600,000) 830.295 S 149.080 Total assets 76,340s 112,760 Accounts payable Salaries payable Bonds payable Common stock (2) 20,000 225,000 300,000 14,500 275,000 100,000 $(36,420) 5,500 (50,000) 200,000 Retained earnings (4) Total labilities and shareholders' 979.375830,295 149.080 equity (1) Sold LT Investment with book value of $69,500 for $84,500 (2) Purchased Land by issuing common stock ) Equipment costing $50,000 and accumulated depreciation of $10,000 was sold for $40,000 Net income was $60,000

Answer 1

Flower Company Statement of Cashflow For the period ending December 31 Cashflow from Operating Activity Net Income Adjustments: Depreciation (600000 572000 + 10000) Gain on sale of investment Increase in Accounts Receivable Increase in Inventory Decrease in Accounts Payable Increase in Salary Payable Cash used for operating activity 60000 38000 15000 21750 58000 36420 5500-87670 27670 Cashflow from Investing Activity Investment sold Equipment sold Cash generated from Investing activity 84500 40000 124500 Cashflow from Financing Activity Common Stock issued ( 200000 125000) Bonds Redeemed Dividends paid Cash used for Financing activity Net Increase in Cash Beginning Cash Balance Ending Cash Balance 75000 50000 30000 5000 91830 22955 68875

Increase /(Decrease) Catego Assets Cash Accounts Receivable Invento Long Term Investment Land Equipment Accumulated Depreciation 91830 21750 58000 69000 125000 50000 28000 Cash balance Operating Activi Operating Activi Investing Activi Non Cash Investing Activi Operating Activi Accounts Payable Salary Payable Bonds Payable Common Stock Retained Earnings 36420 5500 50000 200000 30000 Operating Activi Operating Activi Investing Activi Non Cash & Investing Activi Financing Activity