LIVERS INC.

Statement of Cash Flows

For the Year Ended December 31, 20Y3

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash

flow from operating activities:

Depreciation

100,000

Loss on inventory write down and fixed assets

Gain on sale of investments

Changes in current operating assets and liabilities:

Increase in accounts receivable

(50,000)

Increase in inventories

(20,000)

Increase in accounts payable

40,000

Decrease in accrued expenses payable

(5,000)

Net cash flow from operating activities

Cash flows from investing activities:

Cash received from sale of investments

Cash paid for purchase of land

(500,000)

Cash paid for purchase of equipment

(200,000)

Net cash flow used for investing activities

Cash flows from financing activities:

Cash received from sale of common stock

$125,000

Cash paid for dividends

Net cash flow from financing activities

Change in cash

Cash at the beginning of the year

150,000

Cash at the end of the year

$155,000

Optional:

LIVERS INC.

Spreadsheet (Work Sheet) for Statement of Cash Flows

For the Year Ended December 31, 20Y3

Balance,

Transactions

Balance,

Dec. 31, 20Y2

Debit

Credit

Dec. 31, 20Y3

Cash

150,000

155,000

Accounts receivable (net)

400,000

450,000

Inventories

750,000

770,000

Investments

100,000

-

-

Land

-

500,000

Equipment

1,200,000

1,400,000

Accum. depr. - equipment

(500,000)

(600,000)

Accounts payable

(300,000)

(340,000)

Accrued expenses payable

(50,000)

(45,000)

Dividends payable

(25,000)

(30,000)

Common stock, $4 par

(600,000)

(700,000)

Paid-in capital in excess of par

(175,000)

(200,000)

Retained earnings

(950,000)

(1,360,000)

Totals

-

-

Operating activities:

Net income

Depreciation

Gain on sale of investments

Increase in accounts receivable

Increase in inventories

Increase in accounts payable

Decrease in accrued expenses payable

Investing activities:

Purchase of equipment

Purchase of land

Sale of investments

Financing activities:

Declaration of cash dividends

Sale of common stock

Increase in dividends payable

Net change in cash

Totals