Answer:
Tiger Enterprises
Statement of Cash Flows
For Year ended December 31, 2018
Cash flow from operating activities
Net income $1,308
Adjustment to reconcile net income $110
+ depreciation $270
+ decrease in accounts receivable $95
+ increase in income tax payable $35
- increase in inventory ($55)
- increase in prepaid insurance ($45)
- decrease in accounts payable ($75)
<u>- decrease in other expenses payable ($115) </u>
Net cash flow from operating activities $1,418
Cash flow form investing activities
<u>Acquisition of P, P & E ($450) </u>
Net cash flow from investing activities ($450)
Cash flow from financial activities
Proceeds from notes payable $230
Proceeds from issuance of common stock $130
<u>Payment of dividends ($1,198) </u>
Net cash flow from financing activities ($838)
Total cash flow increase $130
<u>Cash balance December 31, 2017 $230 </u>
Cash balance December 31, 2018 $360
Explanation:
cash $360 - $230 (+$130 change)
net income $1,308
depreciation $270
accounts receivable -$95 change
inventory + $55 change
Prepaid insurance + $45 change
P, P & E +$450 change
Accounts payable - $75 change
Other expenses payables -$115 change
income tax payable +$35 change
notes payable +$230 change
common stock +$130 change
retained earnings +$110 change
dividends paid = net income - change in retained earnings = $1,308 - $110 = $1,198
