Information for XYZ Co. 12/31/2017 12/31/2016 13,000 Account Description Assets Cash & Cash Equivalents Accounts Receivable Equipment Accumulated Depreciation - Equipment Total Assets 88,000 45,000 91,000 139,000 (17.000) 258.000 22,000 (11.000) 112.000 20,000 15.000 0 80,000 100,000 100,000 38,000 258,000 17.000 112.000 Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Additional Information (A) - Net income for 2017 was $44,000. (B) - New equipment was purchased in 2017 but none was sold. (C) - Cash dividends of $23,000 were declared and paid in 2017. (D) - $100,000 of equipment was acquired by the issuance of Bonds Payable. Step 1 - Prepare a "Comparative Balance Sheet" and compute the change (increase or decrease in the account balances during the period. BE SURE TO NOTATE ANY "NON-CASH INVESTING AND FINANCING ACTIVITIES" to ensure that they are included in ONLY the "Non-Cash" section of the Cash Flow Statement This is your "anchor" and the Cash Flow Statement will reflect all of these changes either in: The "cash" section (a combination of (a) Operating Activities, (b) Investing Activities, and (c) Financing Activities) or, A "non-cash" section (for Non-Cash Investing and Financing Activities) Account Description 12/31/2017 12/31/2016 Increase (Decrease) Assets Cash & Cash Equivalents 45,000 13,000 Accounts Receivable 91,000 88,000 Equipment 139,000 22.000 Accumulated Depreciation - Equipment (17,000) (11,000) Total Assets 258,000 112.000 15,000 Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 20,000 100,000 100,000 80,000 17.000 38.000 258.000 112.000 Step 2 - The "ultimate goal of the Cash Flow Statement is to determine and detail why Cash and ca Equivalents during the period by $_____ Step 3 - Prepare the "Operating Activities" section of the Cash Flow Statement Description Amount Net Cash Provided By (Used In) Operating Activities Step 4 - Prepare the "Investing Activities" section of the Cash Flow Statement. Investing Activities represent either amounts that a company "invests" in: (a) Itself (i.e., capital expenditures or purchases for fixed assets, purchasing another business) or the disposals/sales of fixed assets or a business, and (b) The stock or bonds of other entities (i.e., purchasing an investment in the common stock or bonds of another company) or disposing of such investments Description Amount Net Cash Provided By (Used In) Investing Activities Step 5 - Complete the "Financing Activities" section of the Cash Flow Statement. Financing Activities represent either amounts that: (a) Are received from owners (i.e., capital contributions from owners or proceeds from sale of the company's stocks or bonds to 3rd parties), or distributions of cash back to owners (i.e., dividends paid to owners) (b) A company borrows from a bank or other lender, and the principal payments made by the company to repay the loans (interest paid by the company is charged to "interest expense" which is a reduction of Net Income in the Operating Activities section) Description Amount Net Cash Provided By (Used In) Financing Activities Step 6 - Determine if there are any "Non-Cash Investing and/or Financing Activities". Non-Cash Investing and/or Financing Activities represent transactions where there was some investing and financing transaction that did not require any outlay of cash. So with a Non-Cash Investing and/or Financing Activity, some long- term asset, long-term liability, or stockholders' equity is impacted through a non-cash transaction. These "non-cash" transactions get reported as "Non-Cash Investing and/or Financing Activities" below the body of the cash transactions section of the Cash Flow Statement. Examples of Non-Cash Investing and/or Financing Activities are: (a) A company acquiring property or equipment by issuing some of its stock or bonds, (b) Issuing stock (rather than paying cash) to pay off some of the company's debt. Description Step 7 - The subtotals of the 3 sections (i.e., Operating Activities, Investing Activities, and Financing Activities) of the Cash Flow Statement must equal the change in Cash and Cash Equivalents, and then by adding Cash at the beginning of the year, the Cash Balance at the end of the year is computed (and equals the Cash Balance at the end of the current year). Net Increase (Decrease) In Cash & Cash Equivalents Cash & Cash Equivalents - Beginning of Year Cash & Cash Equivalents - End Of Year Step 8 - Prepare the Cash Flow Statement for XYZ Co. for the Year Ended 12/31/17. Cash Flows From Operating Activities Net Cash Provided By (Used In) Operating Activities Cash Flows From Investing Activities Net Cash Provided By (Used In) Investing Activities Cash Flows From Financing Activities