Answer:
Monty Company
Statement of Cash Flows
December 31, 2020
Cash flows from operating activities
Net income $790
Adjustments to reconcile net income $40
+ depreciation expense $40
+ decrease in inventory $260
+ increase in accounts payable $300
- gain from sale of investments ($80)
- increase in accounts receivable ($430)
<u>- decrease in accrued liabilities ($50) </u>
<u />
Net cash flow from operating activities $830
Cash flows from investing activities
Sale of long term investments $140
Gain from sale of investments $80
<u>Purchases of P, P & E ($190)</u>
Net cash flow from investing activities $30
Cash flow from financing activities
Issuance of Common Stocks $210
- Payments of long term debt ($160)
- Dividends paid ($260)
Net cash from financing activities ($210)
Net increase in cash $650
<u>+ Beginning cash balance $1,160</u>
Ending cash balance $1,810
