Answer:
<em>Cash Flow from Operating Activities</em>
Net income 20,100
Adjustments for Non-Cash items :
Amortization of Patent 2,100
Depreciation 7,500
Gain on Sale of Asset (5000)
Adjustments for Working Capital Items :
Decrease in Prepaid expenses 900
Decrease in Accounts receivable 3,100
Increase in Inventory (10,500)
Decrease in Accounts payable (1,500)
Increase in Accrued liabilities 1,800
<em>Cash Flow from Investing Activities</em>
Purchase of Plant assets (24,500)
Cash Rec'd From Sale of Assets 35,000
<em>Cash Flow from Financing Activities</em>
Decrease in Mortgage payable (58,300)
Increase in Paid In Capital 12,000
Dividends Paid (13,800)
Movement During the year
Cash and Cash Equivalents at Beginning of the year 15,300
Cash and Cash Equivalents at End of the year 28,200
Explanation:
Prepare the Cash flow Statement under the following headings
1.Cash Flow from Operating Activities
2.Cash Flow from Investing Activities
3.Cash Flow from Financing Activities
