Information for XYZ Co.

Account Description	December 31, 2017	December 31, 2016
Assets
Cash and Cash Equivalents	45,000	13,000
Accounts Receivable	91,000	88,000
Equipment	139,000	22,000
Accum. Deprec. Equipment	(17,000)	(11,000)
Total	258,000	112,000
Liabilities & Stockholders Equity
Accounts Payable	20,000	15,000
Bonds Payable	100,000	0
Common Stock	100,000	80,000
Retained Earnings	38,000	17,000
Total	258,000	112,000

Additional Information

(A) Net income for 2017 was $44,000.

(B) New equipment was purchased in 2017 but not was sold

(C) Cash dividends of $23,000 were declared and paid in 2017

(D) $100,000 of equipment was purchased 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. 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 and Cash Equivalents	45,000	13,000
Accounts Receivable	91,000	88,000
Equipment	139,000	22,000
Accum. Deprec. Equipment	(17,000)	(11,000)
Total	258,000	112,000
Liabilities & Stockholders Equity
Accounts Payable	20,000	15,000
Bonds Payable	100,000	0
Common Stock	100,000	80,000
Retained Earnings	38,000	17,000
Total	258,000	112,000

Step 2 The ultimate goal of the Cash Flow Statement is to determine and detail why Cash and Cash Equivalents during the period ___________________.

Step 3 Prepare the Operating Activities section of the Cash Flow Statement.

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

Net Cash Provided by (Used in) Investing Activities