Answer:
Please see below for solution:
Explanation:
Mitch Company
Statement of Cash Flow
As of December 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 42,750
<em>Adjustments to reconcile net income to
</em>
<em>net cash provided by operating activities:
</em>
Depreciation on Fixed Assets 15,450
<em>(Increase) Decrease in Current Assets:</em>
Accounts Receivables 6,200
Merchandise Inventory (5,150)
<em>Increase (Decrease) in Current Assets:</em>
Accounts Payable (10,300)
Wages payable (600)
NET CASH PROVIDED BY OPERATING ACTIVITIES 48,350
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and equipment (61,350)
NET CASH USED IN INVESTING ACTIVITIES (61,350)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Note Payable, Long Term (12,200)
Payment of Cash Dividends (10,450)
Issuance of Common Stock and additional paid-in capital 36,400
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 13,750
NET INCREASE (DECREASE) IN CASH 750
<em>Cash Balance, December 31 2016 66,200 </em>
<em>Cash Balance, December 31 2017 66,950 </em>
