e. What was the total amount of sources and uses of Tunus 4. Now that Allisha McKay (see Question 3) has compiled the sources and uses of funds information she needs, she j 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 Incom Statement and Statement of Retained Earnings for This Year, as well as This Year and Last Year's Balance Sheets sho in the previous Question 3. Then, answer the questions that follow: Test Your Skils The Fred Proffet Company Condensed Income Statement and Statement of Retained Earnings 189 For the Period: January 1 through December 31, This Year SALES Gost of Sales Labor PRIME COSTS ber Operating Expenses (excluding depreciation) $5.200,000 1,560,000 1,456,000 Depreciation OPERATING INCOME 3,016,000 1401000 105,000 Interest INCOME BEFORE INCOME TAXES 675,000 242,000 Income Taxes 433,000 NET INCOME 173,000 260,000 STATEMENT OF RETAINED EARNINGS Retained Earnings, December 31, Last Year Net Income for This Year 1,146,000 Subtotal 260,000 1,406,000 Cash Dividends Paid This Year 156,000 Retained Earnings, December 31, This Year $1,250,000 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 NET CASH FLOW FROM INVESTING ACTIVITIES Decrease in Marketable Securities Increase in Property and Equipment Net Cash Flow from Investing Activities (continued) 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 Cash Flow Information" portion of the statement? The Fred Proffet Company Condensed Income Statement and Statement of Retained Earnings or the Period: January 1 through December 31, This Year Tost Vour Skits 189 54LES 55200000 Go of Sales Eabor 1560 000 L46000 3016.000 PRIME COSTS Other Cperating Expenses (excluding depreciation) Depenciation oPERATING INCOME 1404.000 105,000 Jrest NCOME BEFORE INCOME TAXES 675,000 242.000 455,000 lecome Taxes 173000 NET INCOME 260,000 STATEMENT OF RETAINED EARNINGS Beained Earnings, December 31, Last Year 1,146.000 Net Income for This Year 260.000 Subtotal 1,406,000 Cah Dividends Paid This Year 156,000 Rrained Earnings, December 31, This Year $1,250,000 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 NET CASH FLOW FROM INVESTING ACTIVITIES Decrease in Marketable Securities Increase in Property and Equipment Net Cash Flow from Investing Activities (cnd Chapter 5 The Statement of Cash Flows 190 (Continund) 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 "Sunnlementary Diecloure nf C Flow Infamat e. What was the total amount of sources and uses of Tunus 4. Now that Allisha McKay (see Question 3) has compiled the sources and uses of funds information she needs, she j 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 Incom Statement and Statement of Retained Earnings for This Year, as well as This Year and Last Year's Balance Sheets sho in the previous Question 3. Then, answer the questions that follow: Test Your Skils The Fred Proffet Company Condensed Income Statement and Statement of Retained Earnings 189 For the Period: January 1 through December 31, This Year SALES Gost of Sales Labor PRIME COSTS ber Operating Expenses (excluding depreciation) $5.200,000 1,560,000 1,456,000 Depreciation OPERATING INCOME 3,016,000 1401000 105,000 Interest INCOME BEFORE INCOME TAXES 675,000 242,000 Income Taxes 433,000 NET INCOME 173,000 260,000 STATEMENT OF RETAINED EARNINGS Retained Earnings, December 31, Last Year Net Income for This Year 1,146,000 Subtotal 260,000 1,406,000 Cash Dividends Paid This Year 156,000 Retained Earnings, December 31, This Year $1,250,000 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 NET CASH FLOW FROM INVESTING ACTIVITIES Decrease in Marketable Securities Increase in Property and Equipment Net Cash Flow from Investing Activities (continued) 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 Cash Flow Information" portion of the statement? The Fred Proffet Company Condensed Income Statement and Statement of Retained Earnings or the Period: January 1 through December 31, This Year Tost Vour Skits 189 54LES 55200000 Go of Sales Eabor 1560 000 L46000 3016.000 PRIME COSTS Other Cperating Expenses (excluding depreciation) Depenciation oPERATING INCOME 1404.000 105,000 Jrest NCOME BEFORE INCOME TAXES 675,000 242.000 455,000 lecome Taxes 173000 NET INCOME 260,000 STATEMENT OF RETAINED EARNINGS Beained Earnings, December 31, Last Year 1,146.000 Net Income for This Year 260.000 Subtotal 1,406,000 Cah Dividends Paid This Year 156,000 Rrained Earnings, December 31, This Year $1,250,000 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 NET CASH FLOW FROM INVESTING ACTIVITIES Decrease in Marketable Securities Increase in Property and Equipment Net Cash Flow from Investing Activities (cnd Chapter 5 The Statement of Cash Flows 190 (Continund) 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 "Sunnlementary Diecloure nf C Flow Infamat