Question 7

Use the following income statement and balance sheet information to put together a statement of cash flows. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		2017
Sales		$1,242,000
Cost of goods sold		$687,000
Gross profit		$555,000
Gen'l & admin expense		$157,000
Selling & mkt expense		$134,000
Depreciation		$24,000
Operating income		$240,000
Interest		$142,000
Income before taxes		$98,000
Income taxes (27%)		$26,460
Net income		$71,540
Dividends paid		$25,000

Assets		2017		2016
Cash		$24,000		$14,760
Accounts receivable		$124,000		$113,000
Inventory		$201,000		$216,000
Total current assets		$349,000		$343,760
Gross plant and equipment		$700,000		$475,000
Less: accum. depreciation		$313,000		$289,000
Net plant and equipment		$387,000		$186,000
Total assets		$736,000		$529,760
Liabilities
Accounts payable		$116,000		$102,000
Notes payable		$27,000		$27,000
Total current liabilities		$143,000		$129,000
Long-term debt		$244,000		$149,000
Total liabilities		$387,000		$278,000
Common stock ($0.01 par)		$4,500		$4,000
Paid-in capital		$227,500		$177,300
Retained earnings		$117,000		$70,460
Total stockholders' equity		$349,000		$251,760
Total liabilities and equity		$736,000		$529,760

Statement of Cash Flows 2017
Cash from OperationsCash from InvestmentInvesting ActivitiesNet Change in CashCash from FinancingFinancing ActivitiesOperating Activities
Dividends PaidIssuance of Long-term debtPurchase of Fixed AssetsDecrease in InventoriesSale of Fixed AssetsIncrease in InventoriesIssuance of Common StockDecrease in Accounts ReceivableIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Accounts ReceivableNet Income/LossDepreciation		$
Net Income/LossDepreciationPurchase of Fixed AssetsIncrease in InventoriesSale of Fixed AssetsDecrease in Accounts ReceivableDecrease in InventoriesIssuance of Common StockIssuance of Long-term debtIncrease in Accounts PayableDecrease in Accounts PayableDividends PaidIncrease in Accounts Receivable
Decrease in Accounts PayablePurchase of Fixed AssetsDecrease in Accounts ReceivableSale of Fixed AssetsDividends PaidIssuance of Common StockDecrease in InventoriesIssuance of Long-term debtIncrease in InventoriesIncrease in Accounts PayableNet Income/LossDepreciationIncrease in Accounts Receivable
DepreciationIssuance of Common StockDecrease in Accounts ReceivableIncrease in Accounts ReceivableSale of Fixed AssetsDividends PaidDecrease in InventoriesIncrease in Accounts PayableDecrease in Accounts PayablePurchase of Fixed AssetsIssuance of Long-term debtIncrease in InventoriesNet Income/Loss
Purchase of Fixed AssetsDividends PaidSale of Fixed AssetsDecrease in Accounts ReceivableIssuance of Common StockDecrease in InventoriesIncrease in InventoriesIncrease in Accounts PayableIssuance of Long-term debtNet Income/LossDepreciationDecrease in Accounts PayableIncrease in Accounts Receivable
Financing ActivitiesInvesting ActivitiesCash from OperationsCash from FinancingNet Change in CashCash from InvestmentOperating Activities
Operating ActivitiesCash from OperationsCash from InvestmentInvesting ActivitiesFinancing ActivitiesNet Change in CashCash from Financing
Decrease in Accounts ReceivableIssuance of Common StockNet Income/LossSale of Fixed AssetsDecrease in InventoriesIncrease in Accounts PayableDecrease in Accounts PayableIncrease in InventoriesIncrease in Accounts ReceivablePurchase of Fixed AssetsDividends PaidIssuance of Long-term debtDepreciation
Cash from FinancingOperating ActivitiesInvesting ActivitiesCash from InvestmentFinancing ActivitiesCash from OperationsNet Change in Cash
Cash from FinancingCash from OperationsNet Change in CashOperating ActivitiesFinancing ActivitiesInvesting ActivitiesCash from Investment
Sale of Fixed AssetsDividends PaidIssuance of Long-term debtDecrease in Accounts ReceivableIncrease in Accounts PayableDecrease in InventoriesIssuance of Common StockNet Income/LossDepreciationDecrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoriesPurchase of Fixed Assets
Issuance of Long-term debtIssuance of Common StockDividends PaidDepreciationIncrease in Accounts ReceivableIncrease in InventoriesDecrease in Accounts PayableDecrease in InventoriesSale of Fixed AssetsPurchase of Fixed AssetsDecrease in Accounts ReceivableIncrease in Accounts PayableNet Income/Loss
Dividends PaidSale of Fixed AssetsDepreciationIncrease in InventoriesIncrease in Accounts PayableIncrease in Accounts ReceivableDecrease in Accounts ReceivableDecrease in InventoriesDecrease in Accounts PayablePurchase of Fixed AssetsIssuance of Common StockIssuance of Long-term debtNet Income/Loss
Net Change in CashCash from FinancingOperating ActivitiesCash from OperationsCash from InvestmentInvesting ActivitiesFinancing Activities
Cash from OperationsCash from FinancingNet Change in CashCash from InvestmentOperating ActivitiesFinancing ActivitiesInvesting Activities