Answer:
Cash Flow Statement
<u>Cash flow from Operating Activities</u>
Net Income $296,000
<u>Adjustments</u>
Depreciation $34,000
(212,000- 178,000)
Loss on sale of Investments $20,000
Decrease in Accounts Receivable $10,000
(370,000 - 360,000)
Decrease in Current Liabilities -$34,000
(268,000 - 302,000)
Total Adjustments <u>$30,000</u>
Cash from operating activities $326,000
<u>Cash flow from Investing Activities
</u>
Purchase of Equipment -$116,000
(480,000 - 596,000)
Sale of Investment $24,000
(148,000 - 104,000 -20,000)
Cash used in investing activities -$92,000
<u>Cash flow from Financing Activities
</u>
Issue of shares $-
Dividend Paid -$60,000
Cash from financing activities -$60,000
Net Increase in cash $
174,000
Opening Balance of Cash <u>$156,000</u>
Closing Balance of Cash <u>$330,000</u>