Question

Principal payments on non-current debis 50,000 Collections an accounts receivable287,500 Increase in accounts payable24,300 Acquisition of equipment by issuing non-current note payable70,000 Depreciation expense71,300 Collection of loan principal58,000 Proceeds from sale of investments, not including $5,100 gain49,100 Increase in accounts receivable7,200 Cash payments to purchase capital assets62,000 Decrease in accrued liabilities 30,600 Payment of cash dividends 46,500 Income tax expense and payments 19,300 Proceeds from sale of capital assets, not including $7,400 loss 22,600 Net income147,100 Cash sales217,400 Proceeds from issuance of common shares 300,000 Increase in inventory 11,700 Loan to another company60,000 Bonds payable converted into common shares 130,000 Payments to suppliers 283,100 Decrease in prepaid expenses 12,800 Cash balance: December 31, 201662,500 Cash balance: December 31, 2017452,000 Prepare the cash flow statement for the year ended December 31, 2017, using the indirect method

Answer 1

1. Statement of Cash Flows (Indirect Method) -

Statement of Cash Flows (Indirect Method) For the year ended December 31, 2017 Cash flow from operating activities Net Income $ 147,100 Adjustments for non cash items Depreciation Expenses $ 71,300 Loss on sale of capital assets $ 7,400 Gain on Sale of investments $ (5,100) $ 73,600 Change in working capital Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Liabilities $ (7,200) $ (41,700) $ 12,800 $ 24,300 $ (30,600) $ (42,400) Net Cash flow from operating activities $ 178,300 Cash flow from Investing activities Proceeds from sale of investments Cash Payment to purchase capital assets Proceeds from sale of capital assets Loan to another company $ 49,100 $ (62,000) $ 22,600 $ 60,000) Net Cash flow from Investing activities $ (50,300) Cash flow from Financing activities Principal payments on non current debt $ (50,000) Collection of loan principal $ 58,000 Payment of cash dividends $ (46,500) Proceeds from issurance of common Shares $ 300,000 Net Cash flow from Financing activities $ 261,500 Change in cash $389,500 Cash at the beginning Cash at the End $ 62,500 $452,000 $ 70,000 Non Cash Investing and Financing Activities Acquisition of Equipment by issuing non current Notes Payable Bond Payable Converted into Common Shares $ 130,000