Q.

Evaluate the Statement of Cash Flows that you have prepared.

COMPANY B
Statement of Cash Flow
For the year ended December 31, 2019
Cash flows from operating activities
Net Income		2,911.73
Adjustments to reconcile net income to net cash flow from operating activities
Depreciation expense	424.28
Increase in marketable securities	(289.26)
Increase in accounts receivable	(2,596.76)
Increase in inventories	(501.41)
Decrease in accounts payable	(21.96)
Increase in notes payable	152.46
Increase in accruals	1,210.70
		(1,621.95)
Net cash provided by operating activities		1,289.78
Cash flows from investing activities
Purchase of fixed assets	(740.16)
Net cash used by investing activities		(740.16)
Cash flows from financing activities
Proceeds from long-term loans	160.27
Proceeds from issue of common stock	414.00
Payment of dividends	(690.01)
Net cash used by financing activities		(115.74)
Net increase in cash		433.88
Cash, 1/1/2019		639.11
Cash, 12/31/2019		1,072.99