Answer:
Statement of cash flows for the year ended December 31, 2022
Cash flow from Operating Activities
Net income 337,000
Adjustment for Non - Cash Items :
Depreciation expense 75,000
Adjustment for Working Capital Items :
Accounts payable decrease (3,500)
Accounts receivable increase (8,700)
Inventory increase (12,100)
Income tax payable increase 4,400
Net Cash from Operating Activities 392,100
Cash flow from Investing Activities
Cash received for sale of land at book value 43,000
Cash used to purchase building (145,000)
Net Cash from Investing Activities (102,000)
Cash flow from Financing Activities
Cash dividends paid (11,800)
Cash used to purchase treasury stock (33,900)
Cash received from issuing bonds 258,000
Net Cash from Financing Activities 212,300
Movement During the year 502,400
Cash and Cash Equivalents at Beginning of the year 43,000
Cash and Cash Equivalents at End of the year 545,400
Explanation:
Prepare the Cash flow Statement under the following headings :
- Cash flow from Operating Activities
- Cash flow from Investing Activities
- Cash flow from Financing Activities
