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Cash Flow Practice Problems (1)

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27 views5 pages

Cash Flow Practice Problems (1)

Uploaded by

hasan68jm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Assets:

Cash
Accounts Receivable
Inventory
Prepaid Expenses
Investments
Equipment
Accumulated Deprecia

Liabilties and Equity


Accounts Payable
Accrued Exp. Payable
Bonds Payable
Common Stock
Retained Earnings

Dividend

Sales
Cash Paid

Cash paid

Beg.

End.

Cash paid for operati


Cheng Inc.
Change Cash Flow Statement (Indirect Method)
31-Dec-17
32,400
59,800 Cash flow from operations
14,650
2,400 Net Income 158,900
29,000 Add: Depreciation Expense 46,500
27,500 Add: Loss on disposal of assets 7,500
(2,000) Deduct: Increase in Acc. Receivable (59,800)
Deduct: Increase in Inventory (14,650)
Deduct: Increase in Prepaid Expenses (2,400)
44,700 Add: Increase in Accounts Payable 44,700
(500) Deduct: Decrease in Accrued. Exp. Payable (500)
(40,000) Cash Flow from Operations 180,250
45,000 Net Cash provided by operating activities
118,550
Cash flow from investing activities
New Investment (29,000)
Purchase of new equipment (85,000)
Retained Earnings Sales of old equipment 1,500
105450 Beg. Cash flow from investing (112,500)
40350 158900 Net Income Net cash used by investing activities
224000 End.
Cash flow from financing activities
Payment of Bonds (40,000)
Issue of new common stock 45,000
Payment of Dividend (40,350)
Cash flow from financing (35,350)
Net cash used by financing activities

Net increase in cash flow 32,400


Beginning cash balance 48,400
Ending cash balance 80,800

Note: any significant non cash transactions

Cash flow statement (Direct Method)


Account Receivable
Debit Credit Cash flow from operating activities
33,000 Cash collected from Sales 332,980
392780 332,980 Cash collection Cash paid to suppliers (105,410)
92,800 Cash paid for operating expenses (15,310)
Cash paid for income taxes (27,280)
Purchases 150,110 Cash paid for interest expense (4,730)
Net cash provided by operating activit 180,250
Acconts Payable Cash flow from operating activities
Debit Credit
67300 Beg
105,410 150,110 Purchases
112000 End

Accrued Expenses Payable


Debit Credit
17000 Beg.
12910 12410 Op. expenses
16500 End.

Prepaid Expenses
Debit Credit
26000
2400
28400

15310
Cash flow from assets
Free Cash Flow
Cash from operationg minus investment in PPE minus cash dividend
FCF 54,900

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