Question

1. Based on the following infomation for XYZ, Inc., prepare the operating section of the statement of cash flows for 2021: Increase in accounts payable Decrease in accounts payable Increase in accounts receivable 2021 2020 $ 104,558,367 Current assets Revenues Gain/(loss) on sales of assets Accounts receivable 8,836,351 Decrease in accounts receivable (275,660) 7,520,299 17.50% + Total revenues Inventory -31.75% - 104,282,707 16,918,496 24,789,005 Increase in accrued liabilities Prepaid expenses 1,475,769 Decrease in accrued liabilities -4.50% - Expenses: 1,545,308 Amortization Cost of goods sold 54,370,351 Operating expenses Depreciation expense 21,957,257 Current liabilities Depreciation uOUBIDaidag Gain on sale of assets 9,410,253 Accounts payable 5,702,052 8,909,456 -36.00% - Increase in interest payable Decrease in interest payable Total expenses 85,737.861 1,085,206 995,602 9.00% + Accrued liabilities $ 18,544,846 Income tax payable 2$ 3,785,220 21.00% + Net Income 4,580,116 Increase in inventory XYZ, Inc. Decrease in inventory Loss on sale of assets Statement of Cash Flows Not income Net loss Net income Increase in prepaid insurance Decrease in prepaid insurance Increase in prepaid expenses Decrease in prepaid expenses melease Purchase of assets Sale of assets Sale of common stock Sale of bonds Net cash from operations:$ Repayments of bonds 2. Based on the following information for ABC, Inc., prepare the operating section of the statement of cash flows for 2021: Purchase of treasury stock Increase in tax payable 2021 2020 Decrease in tax payable Revenues 7,055,398 Current assets Gain on sale of assets 1,050,552 Accounts receivable 1,478,125 1,250,000 18.25% + 3,018,750 Total revenues 8,105,950 3,750,000 -19.50% - Inventory Expenses: Prepaid expenses 15,563 15,000 3.75% + Cost of goods sold 3,809,915 Operating expenses 1,693,296 Current liabilities 670,263 -28.75% - Depreciation expense Total expenses Accounts payable 1,129,313 1,585,000 6,173,473 3,283,385 Accrued liabilities 2,905,650 13.00% + Net Income 24 1,932,477 Taxes payable 2$ -11.50% - 67,703 76,500 nvesting and financing activities: $ 10,000,000 $ 51,469,903 Bought new equipment & vehicles Sold land and investments Sold bonds 4,108,557 10,622,807 Sold stock ABC, Inc. Statement of Cash Flows Net cash from investments Net cash from financing: Beginning cash from prior year: Total net cash generated: 675,881 Net cash from operations:$ Cash flows: 675,881

Answer 1

1	XYZ, Inc.
	Statement of Cash Flows - Indirect Method
	Year Ended December 31, 2021
	Cash flow from operating activities
	Net Income	$18,544,846
	Adjust to reconcile net income to Net cash provided by operating activities:
	Depreciation expense	$9,410,253
	Loss on sale of assets	$275,660
	Increase in Accounts receivable	($1,316,052)
	Decrease in Inventory	$7,870,509
	Decrease in Prepaid expenses	$69,539
	Decrease in Accounts payable	($3,207,404)
	Increase in Accrued liabilties	$89,604
	Net Cash provided by operating activities	$31,736,955
2
	ABC, Inc.
	Statement of Cash Flows - Indirect Method
	Year Ended December 31, 2021
	Cash flow from operating activities
	Net Income	$1,932,477
	Adjust to reconcile net income to Net cash provided by operating activities:
	Depreciation expense	$670,263
	Gain on sale of assets	($1,050,552)
	Increase in Accounts receivable	($228,125)
	Decrease in Inventory	$731,250
	Increase in Prepaid expenses	($563)
	Decrease in Accounts payable	($455,687)
	Increase in Accrued liabilties	$377,735
	Decrease in Taxes Payable	($8,797)
	Net Cash provided by operating activities		$1,968,001
	Cash flow from investing activities
	Purchase of Assets	($4,108,557)
	Sale of Assets	$10,622,807
	Net cash provided by investing activities		$6,514,250
	Cash flow from financing activities
	Sale of Bonds	$10,000,000
	Sale of Common Stock	$51,469,903
	Net Cash provided by financing activities		$61,469,903
	Begining cash from prior year		$675,881
	Total net cash generated		$69,952,154
	Cash flows		$70,628,035