Answer:
Ending cash balance is -$41,000.
Explanation:
This can be prepared as follows:
Nathan Herrmann
Cash Flow Statement
for the year ended ...
<u>Details $ $ </u>
Net income 69,000
Adjustment to reconcile net income
Depreciation expense 13,000
Loss on sale of land 12,000
(Increase) decrease in current assets
Increase in inventory (35,000)
Increase in prepaid rent (7,500)
Increase in accounts receivable (47,000)
Increase (decrease) in current liabilities:
Increase in accounts payable <u> 15,000 </u>
Net cash from operating activities 19,500
<u>Cash flows from investing activities: </u>
Cash received from the sale of land 7,500
Purchase of equipment <u> (229,000) </u>
Net cash flows from Investing activities (221,500)
<u>Cash flows from financing activities: </u>
Payment of dividends (31,000)
Repayment of notes payable (49,000)
Issuance of common stock <u> 241,000 </u>
Net cash from financing activities <u> 161,000 </u>
Increase / (Decrease) in cash (41,000)
Beginning cash balance <u> - </u>
Ending cash balance <u> (41,000) </u>
