CP 14-8

Assume the following income statement information:

Service revenue (all cash) $175 Operating expenses

Salaries (all cash) 85 Net income $90

and balance sheet

Current assets

Cash

Shortterm invest.

Liabilities

Borrowings

Stockholders' equity

Common stock Retained earnings

2020 2019

$1,250 $1,600 100 200 $1,350 $1,800

600 1,000

200 300 550 500 750 800

$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 noncurrent. No gain or loss occurred when common stock was repurchased.

Required:

1. 2. 3. 4.

Calculate cash flow from operating activities.

Prepare the 2020 statement of changes in equity.

Calculate cash flow from financing activities.

(Appendix) make a cash flow table. Show that cash effects net to a $450 outflow.

Can you add the appendix cash flow table and activity