CWH (unrelated to Problem A) provides you with comparative statements of financial position and some additional information. Using the indirect method, calculate cash flow from operating activities. Then as best you can, calculate cash inflow/outflow from Investing activities and from Financing activities (youll need to make assumptions, you do not have complete information and it isnt available).

2020 2021

Cash............................................................ $ 5,000 $ 17,000

Accounts receivable.................................... 45,000 35,000

Inventory..................................................... 72,000 63,000

Total current assets...................................... 122,000 115,000

Land............................................................ 100,000 100,000

Buildings..................................................... 5,000,000 6,000,000

Equipment................................................... 12,000,000 21,000,000

Accumulated Depreciation.......................... (4,000,000) (4,750,000)

Net PP&E.................................................... 13,100,000 22,350,000

Patents......................................................... 7,000,000 5,800,000

Total Assets................................................. $20,222,000 $28,265,000

Accounts payable........................................ $ 28,000 $ 45,000

Accrued expenses........................................ 25,000 60,000

Income taxes payable.................................. 12,000 25,000

Total current liabilities................................. 65,000 130,000

Long term debt............................................ 12,000,000 17,000,000

Common stock............................................ 1,500,000 2,000,000

Retained earnings........................................ 6,657,000 9,135,000

Total Liabilities and Equity.......................... $20,222,000 $28,265,000

Additional information provided:

• Net income = $2,650,000
• Dividends were declared and paid during the year. The person you spoke to doesnt remember how much.
• Depreciation expense = $750,000
• Make reasonable assumptions as need be.

Required (your answer does not need to be a perfectly formatted cash flow statement). Show your work, an answer without support is not sufficient.

1. Calculate cash flow from operating activities, showing your complete calculation.
2. Calculate cash provided by/used in investing activities (youll need to make some assumptions).
3. Calculate cash provided by /used in financing activities (again, youll need to make some assumptions)
4. Show that the sum of the three cash flow numbers is equal to the change in cash.