Question

15/ The Schuster Corporation's balance sheets at the end of the two most recent fiscal years are shown below: Fiscal Years Ended October 31, ($000) 2006 2007 Assets Cash Accounts receivable Inventory Other current assets Total current assets Fixed assets, at cost Less: accumulated depreciation Net fixed assets Total assets $1,732 7,219 4.086 781 13,818 16,083 (7,616) 8,467 $22,285 $1,915 8,613 5,118 836 16,482 16,991 (9,085) 7,906 $24,388

Answer 1

Cash Flow Statement for Schuster for 2007

Particulars	$000
Cash flows from Operating Activities
Profit before taxation	755
Add : Depreciation	1469
Add : Dividend Paid	1100
Cash from operations before working capital changes	3324
Less: Increase in Current Assets
A/R	-1394
Inventory	-1032
Other CA	-55
Add: Increase in Current Assets
A/P	849
Other CL	845
Net Cash flows from Operating Activities (A)	2537
Cash flows from investing activities
Purchase of PPE	-908
Net Cash flows from investing activities (B)	-908
Cash flows from Financing activities
Proceeds from issue of capital stock	154
Payment of Long term Debt	-500
Payment of Dividend	-1100
Net Cash flows from Financing activities (C)	-1446
Net increase(+)/decrease(-) in Cash and Cash Equivalents [(A)+(B)+(C)]	183
Cash and Cash Equivalents at the beginning of the year	1732
Cash and Cash Equivalents at the end of the year	1915