Question

PUUSLIIDID A Data Table (Click the icon to view the additional information.) Read the requirements. A Data Table i Requirements - X 2017 1. Prepare the 2018 statement of cash flows, formailing operating activities by the ixtirect method. 2. How will what you learned in this problemn help you evaluate an investment? 15,800 25,000 91,300 Print Done 13,000 106,380 (14.880) 236,800 Comparative Balance Sheet December 31, 2018 and 2017 2018 Assets Current Assels Cash 26,400 S Accounts Receivable 25,000 Merchandise Inventory 79,600 Long-term Assets: Land 34.700 Plant Assets 120,180 Accumulated Depreciation Plant Assets (19,280) S 268,500 $ Total Assets Liabilities Current Liabilities: Accounts Payable S 35,300 S Accrued Liabilities 28,900 Long-term Liabilities: Notes Payable 75,000 Total Liabilities 140,200 Stockholders' Equity Common Stock, no par 88,300 40.000 Retained Eamings Total Stockholders' Equity 128,500 S 268.500 S Total Liabilities and Stockholders' Equity All Wired, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 438,000 Cost of Goods Sold 202,200 Gross Profit 235,800 Operating Expenses: Salaries Expense S 76,400 Depreciation Expense-Plant Assets 14,800 Other Operating Expenses 11,000 Tolal Operating Expenses 102,200 Operating Income 133,600 Other Income and (Expenses) Interest Revenue 8,800 Interest Expense 121.900) Total Other Income and (Expenses) (13,100) Net Income Before Income Taxes 120,500 Income Tax Expense 19,300 $ 101.200 Net Income 30,300 30,600 100.000 160,900 64,100 11 800 75,900 236.800 Print Done Print Done

Answer 1

1	All Wired, Inc.
	Statement of Cash Flows - Indirect Method
	Year Ended December 31, 2018
		(Figure in $)
	Cash flow from operating activities
	Net Income Before Income Taxes		$120,500
	Adjust to reconcile net income to
	Net cash provided by operating activities:
	Depreciation expense	$14,800
	Increase in Accounts receivable	-$1,900
	Decrease in Merchandise Inventory	$11,700
	Increase in Accounts Payable	$5,000
	Decrease in Accrued Liabilities	-$1,700
			$27,900
	Cash flow from operating activities		$148,400
	Less: Tax Paid		-$19,300
	Net Cash provided by operating activities		$129,100
	Cash flow from investing activities
	Purchase of Land	-$21,700
	Purchase of Plant Assets	-$24,000
	Net cash used by investing activities		-$45,700
	Cash flow from financing activities
	Paid to Notes Payable	-$24,000
	Proceeds from Issue of Common Stock	$24,200
	Dividend Paid	-$73,000
	Net cash used by financing activities		-$72,800
	Net decrease in cash		$10,600
	Cash and cash equivalents, December 31, 2017		$15,800
	Cash and cash equivalents, December 31, 2018		$26,400
2	The relationship between the statement of cash flows and the change in cash is that
	a cash flow statement shows the exact amount of a company's cash inflows and
	outflows over a period of time i.e. change in cash over a period of time. Cash flow statement
	is prepare to know the cash provided or used by different activity like operating activities,
	investing activities and financing activities. In cash flow from investing activities, it can be
	understand that the organization has extra cash to invest in Land and Plant assets.