Answer:
Part a
<u>Cullumber Golf Company</u>
<u>Statement of Cash flow for the Year ended 2017</u>
Cash flow from Operating Activities
Net income $2,679,848
<u>Adjustment for :</u>
depreciation expenses $454,366
decrease in Accounts receivable ($40,463)
increase in Inventory ($52,979)
increase in Other current assets $11,339
increase in Accounts payable and accruals $46,232
Net Cash from Operating Activities $3,098,343
Cashflow from Investing Activities
Purchase of Plant and equipment ($563,821)
Proceeds from sale of Goodwill and other assets $30,420
Net Cash from Investing Activities $533,401
Cash flow from Financing Activities
increase in Notes payable $6,625
Repayment of Long-term debt ($130,034)
increase in Treasury stock ($13,334)
Dividends Paid ($2,473,912)
Net Cash from Financing Activities ($2,610,655)
Movement during the year $16,845
Beginning Cash and Cash Equivalents $16,566
Ending Cash and Cash Equivalents $33,411
Part b
$3,098,343
Part c
$533,401
Part d
($2,610,655)
Explanation:
See Cash flow Statement prepared above using the Indirect method.
<u>Calculation of Dividends Paid </u>
Retained Earnings Schedule
Beginning Balance $398,110
Add Net Income during the Year $2,679,848
Less Ending Balance ($604,046)
Dividends Paid $2,473,912
