Question
CP 148 Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash)$ 85 Net income $90
CP 148 Assume the following income statement and balance sheet information:
Service revenue (all cash) $175
Operating expenses Salaries (all cash)$ 85
Net income $90
2020 2019
Current assets
Cash $1,250 $1,600
Shortterm invest. 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Stockholders equity
Common stock 200 300
Retained earnings 550 500
750 800
$1,350 $1,800
Other information: The shortterm investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non current. No gain or loss occurred when common stock was repurchased.
Required:
1. Calculate cash flow from operating activities
.2.Prepare the 2020 statement of changes inequity
.3.Calculate cash flow from financing activities.
4 .(Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow
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