Question
Finance Style Inc. Balance Sheet December, 31st Assets Cash Accounts Receivable Inventory 2019 2018 614,300 685,000 265,000 255,000 87,000 90,000 Prepaid Insurance Investments Plant and
Finance Style Inc. Balance Sheet December, 31st Assets Cash Accounts Receivable Inventory 2019 2018 614,300 685,000 265,000 255,000 87,000 90,000 Prepaid Insurance Investments Plant and Equipment 5,700 5,300 90,000 80,000 1,500,000 1,300,000 Less Accumulated Depreciation -204,000 -190,000 Total Assets 2,358,000 2,225,300 Liabilities Accounts Payable Long Term Debt Equity Common Stock Retained Earnings Total Liabilities and Equity, Finance Style Inc. 235,000 248,000 820,000 860.000 690,000 631,300 613,000 486,000 2,358,000 2,225.300 Income Statement Year End December 31st Sales Revenue 875,000 Cost of Goods Sold 231,750 Gross Profit 643,250 Depreciation Expense 14,000 Selling and Admin Expense 297,000 Operating Income 332,250 Taxes Payable 94000 Net Income 238,250 A) Create a cash flow statement from the balance sheet and income statement for Finance Style (8 points) B) How is their cash flow from operating activities? Strong or weak? Why? (2 points) C) How is their cash flow from investing activities? Strong or weak? Why? (2 points) D) How is their cash flow from financing activities? Strong or weak? Why? (2 points)
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