a. Did the change in cash reflect a source or a use of funds? What was the amount of that change? b. Did the change in net receivables reflect a source or a use of funds? What was the amount of that changer c. Did the change in notes payable reflect a source or a use of funds? What was the amount of that change? d. Did the change in retained earnings reflect a source or a use of funds? What was the amount of that change? e. What was the total amount of sources and uses of funds? 4.00 4. Now that Allisha McKay (see Question 3) has compiled the sources and uses of funds information she needs, she is ready to prepare The Fred Proffet Company's SCF for this year. Help her complete the company's SCF by using the information taken from the following Condensed Income Statement and Statement of Retained Earnings for This Year, as well as This Year and Last Year's Balance Sheets shown in the previous Question 3. Then, answer the questions that follow: Tout Yours 189 The Fred Proffet Company Condensed Income Statement and Statement of Retained Earnings For the Period: January 1 through December 31, The Year 3.16.000 TIME COSTS Other Operating Expenses (excluding deprecia Depreciation OPERATING INCOME Interes INCOME BEFORE INCOME TAXES come Taxes NET INCOME 175.000 200.000 260.000 STATEMENT OF RETAINED EARNINGS Retained Farmings, December 31, Last Year Net Income for This Year Subtotal Cash Dividends Paid This Year Pemained Farming December 31. This Year 196,000 $1,250,000 520000 The Fred Proffet Company Statement of Cash Flows December 31, This Year NET CASH FLOW FROM OPERATING ACTIVITIES Net Income Adjustments to reconcile net income to net cash flows from operating activities Depreciation Increase in Net Receivables Decrease in Inventories Decrease in Accounts Payable Decrease in Other Current Liabilities Net Cash Flow from Operating Activities IOS OD 1 NET CASH FLOW FROM INVESTING ACTIVITIES Decrease in Marketable Securities Increase in Property and Equipment Net Cash Flow from Irene Activities (contid) 190 Chapter 5 The Statement of Cash Flows (Continued) NET CASH FLOW FROM FINANCING ACTIVITIES Decrease in Notes Payable Increase in Long-Term Debt Increase in Capital Stock (Common Stock + Paid in Capital) Dividends Paid Net Cash Flow from Financing Activities Net Increase in Cash This Year Cash at the beginning of This Year Cash at the end of This Year SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the year for Interest Income Taxes a. What is Allisha's proper entry for "Net Cash Flow from Operating Activities"? b. What is Allisha's proper entry for "Net Cash Flow from Investing Activities"? c. What is Allisha's proper entry for "Net Cash Flow from Financing Activities"? d. What is Allisha's proper entry for "Net Increase in Cash This Year"? e. Since all changes in cash are accounted for in the SCF, what is the purpose of the "Supplementary Disclosure of Flow Information portion of the statement? At the end of his operating year, the manager of the Doral Palms hotel is responsible for developing the cash flow from operating activities section of his SCF by using the indirect method. The following information was taken i the hotel's income statement from this year and the halance chante fee The Fred Proffet Company has been in the contract food service managent business for many years. Their clients ose the Proffet Company for its creativity and attention to detail Alisha McKay is the person who prepares the summary of sources and uses of funds for the Proffet Company Help her do that by using the balance sheets that follow to calculate the company's sources and uses of funds, using us to indicate the differences where appropriate, and then answer the questions that follow, The Fred Proffet Company Balance Sheets December 31, Last Year and This Year Last Year ($) This Year ($) . Sources ASSETS r 4.000 350.000 1.200.000 Marketable Securities Net Receivables Inventories 336.000 1.240,000 1,520,000 844.000 1.550.000 20.093 890,000 188 Chapter 5 The Statement of Cash Flows (Continued) Total Current Assets 3.940.000 3,980,000 1,500,000 1,200,000 420,000 525.000 slus,000 Property and Equipment Less Accumulated Depreciation Net Property and Equipment 780,000 975,000 TOTAL ASSETS 4.720.000 4.905.000 0 LIABILITIES AND OWNERS EQUITY Current liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities 584,000 134,000 636,000 1,354,000 563.000 90.000 300.000 S 19.000 04.07 955,000 Long Term Liabilities Long-Term Debt Total Liabilities 720,000 2,074,000 1.100.000 2,055.000 Owners' Equity Common Stock Paid in Capital Retained Earnings Total Owners' Equity 500,000 1.200,000 1.146.000 2.646.000 320,000 1,280,000 1.250.000 1320000 XL 10.4. 2.850.000 4.720.000 4.905 000 TOTAL LIABILITIES AND OWNERS' EQUITY 243070979309 TOTAL SOURCES AND USES OF FUNDS 2. Did the change in cash reflect a source or a use of funds? What was the amoun b. Did the change in net receivables reflect a source or a use of funds? What was c. Did the change in notes payable reflect a source or a use of funds? What was d. Did the change in retained earnings reflect a source or a use of funds? What e. What was the total amount of sources and uses of fundsources are Question 3) has compiled the sources and uses of funds ere in this year. Ffunds? What was the amount of that change? Qurce or a use of funda? What was the amount of that change? ct a source or a use of funds what was the amount of that change? a source or a use of funds? What was the amount of that change? rces and uses of fundar sources / 2643 We funds information she needs, she is