Problem 3-37 Income versus Cash Flows (LO3) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 $4,000 1,400 $4,100 1,500 Revenue Cost of goods sold Depreciation Inventories Administrative expenses 510 530 260 290 450 500 Interest expense 150 150 Federal and state taxes* 470 490 Accounts payable 300 360 Accounts receivable 410 470 Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 5,470 4,800 3,900 1,900 810 470 470 470 1,770 350 *Taxes are paid in their entirety in the year that the tax obligation is incurred. t Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct a statement of cash flows for Fincorp for 2019. (Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus sign.) Fincorp Inc. Statement of Cash Flows ($ in 000s) Cash flows from operations Net income 930 $ Noncash expenses Depreciation expense $ 530 Changes in working capital (60) Change in accounts receivable Change in inventories (30) 60 Change in accounts payable Total change in working capital (30) Cash provided by operations 1,430 Cash flows from investments Cash used for additions to property, plant and equipment Cash flows from financing activities Additions to long-term debt Dividends paid Reductions in notes payable Cash used for financing activities 0 Net decrease in cash and cash equivalents $ 1,430 Problem 3-37 Income versus Cash Flows (LO3) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 $4,000 1,400 $4,100 1,500 Revenue Cost of goods sold Depreciation Inventories Administrative expenses 510 530 260 290 450 500 Interest expense 150 150 Federal and state taxes* 470 490 Accounts payable 300 360 Accounts receivable 410 470 Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 5,470 4,800 3,900 1,900 810 470 470 470 1,770 350 *Taxes are paid in their entirety in the year that the tax obligation is incurred. t Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct a statement of cash flows for Fincorp for 2019. (Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus sign.) Fincorp Inc. Statement of Cash Flows ($ in 000s) Cash flows from operations Net income 930 $ Noncash expenses Depreciation expense $ 530 Changes in working capital (60) Change in accounts receivable Change in inventories (30) 60 Change in accounts payable Total change in working capital (30) Cash provided by operations 1,430 Cash flows from investments Cash used for additions to property, plant and equipment Cash flows from financing activities Additions to long-term debt Dividends paid Reductions in notes payable Cash used for financing activities 0 Net decrease in cash and cash equivalents $ 1,430
