Question $3$

Statement of Cash Flow

For Year Ended December $31,20$XX

Cash Flows for Operating Activities

Net Income

Blank $1$

Adjustments to reconcile net income to net cash provided by operating activities

Income Statement items not affecting cash

Depreciation Expense

$19,000$

Changes in Current Assets and Current Receivables

Increase in Accounts Receivable

$(99,400)$

Increase in Inventory

$(62,800)$

Increase in Allowance for Bad Debts

Increase in Accounts Payable

Increase in Interest Payable

$6,650$

Net Cash Used by Operating Activities

Cash paid for purchase of equipment

$(80,000)$

Cash paid for purchase of land

Blank $2$

Cash Flows from Investing Activities

$(70,000)$

Cash paid for purchase of building

$(350,000)$

Net Cash Used by Investing Activities

Blank $3$

Cash Flows from Financing Activities

Cash received from issuing stock

Cash paid for dividends

$160,000$

$(23,200)$

Cash received from note payable

$I_{400,000}$

Cash paid for principal of note payable

$(20,000)$

Net Cash Provided by Financing Activities

Blank $4$

Net Increase in Cash

Blank $5$

Cash balance at prior year$-$end

$0$

Cash balance at current year$-$end

Blank $6$