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		$685,000
Gross profit		$557,000
Gen'l & admin expense		$156,000
Selling & mkt expense		$135,000
Depreciation		$24,000
Operating income		$242,000
Interest		$140,000
Income before taxes		$102,000
Income taxes (27%)		$27,540
Net income		$74,460
Dividends paid		$25,000

Assets		2017		2016
Cash		$24,000		$10,840
Accounts receivable		$123,000		$112,000
Inventory		$201,000		$217,000
Total current assets		$348,000		$339,840
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		$735,000		$525,840
Liabilities
Accounts payable		$118,000		$104,000
Notes payable		$29,000		$29,000
Total current liabilities		$147,000		$133,000
Long-term debt		$248,000		$153,000
Total liabilities		$395,000		$286,000
Common stock ($0.01 par)		$4,500		$4,000
Paid-in capital		$219,500		$169,300
Retained earnings		$116,000		$66,540
Total stockholders' equity		$340,000		$239,840
Total liabilities and equity		$735,000		$525,840

Statement of Cash Flows 2017

Net Change in CashFinancing ActivitiesCash from FinancingOperating ActivitiesCash from OperationsInvesting ActivitiesCash from Investment

Increase in Accounts ReceivableDecrease in Accounts ReceivableIncrease in InventoriesNet Income/LossDecrease in InventoriesIncrease in Accounts PayableDecrease in Accounts PayablePurchase of Fixed AssetsDepreciationDividends PaidSale of Fixed AssetsIssuance of Common StockIssuance of Long-term debt

$

Decrease in InventoriesIncrease in InventoriesDividends PaidDecrease in Accounts PayableIssuance of Common StockSale of Fixed AssetsIssuance of Long-term debtNet Income/LossDepreciationPurchase of Fixed AssetsIncrease in Accounts ReceivableIncrease in Accounts PayableDecrease in Accounts Receivable

Purchase of Fixed AssetsIssuance of Long-term debtIncrease in InventoriesNet Income/LossSale of Fixed AssetsDepreciationDividends PaidIncrease in Accounts PayableDecrease in Accounts PayableIssuance of Common StockIncrease in Accounts ReceivableDecrease in Accounts ReceivableDecrease in Inventories

Decrease in Accounts PayableSale of Fixed AssetsDepreciationPurchase of Fixed AssetsDividends PaidIssuance of Common StockIssuance of Long-term debtNet Income/LossIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in InventoriesDecrease in InventoriesIncrease in Accounts Payable

Issuance of Common StockDecrease in Accounts ReceivableDepreciationDividends PaidIncrease in Accounts ReceivableNet Income/LossDecrease in Accounts PayableIncrease in Accounts PayableDecrease in InventoriesIncrease in InventoriesPurchase of Fixed AssetsSale of Fixed AssetsIssuance of Long-term debt

Cash from FinancingInvesting ActivitiesFinancing ActivitiesCash from InvestmentNet Change in CashOperating ActivitiesCash from Operations

Net Change in CashCash from FinancingFinancing ActivitiesOperating ActivitiesCash from OperationsInvesting ActivitiesCash from Investment

Increase in Accounts PayableDecrease in InventoriesIssuance of Long-term debtIncrease in InventoriesDecrease in Accounts PayableNet Income/LossDepreciationPurchase of Fixed AssetsDividends PaidSale of Fixed AssetsIncrease in Accounts ReceivableIssuance of Common StockDecrease in Accounts Receivable

Cash from OperationsInvesting ActivitiesCash from InvestmentFinancing ActivitiesNet Change in CashCash from FinancingOperating Activities

Investing ActivitiesCash from InvestmentCash from FinancingCash from OperationsFinancing ActivitiesNet Change in CashOperating Activities

Sale of Fixed AssetsDecrease in Accounts ReceivableNet Income/LossPurchase of Fixed AssetsDividends PaidIncrease in Accounts ReceivableDecrease in InventoriesIssuance of Common StockIncrease in InventoriesIncrease in Accounts PayableIssuance of Long-term debtDecrease in Accounts PayableDepreciation

Decrease in Accounts PayableIssuance of Long-term debtDecrease in Accounts ReceivableDecrease in InventoriesDepreciationDividends PaidPurchase of Fixed AssetsSale of Fixed AssetsIssuance of Common StockIncrease in InventoriesNet Income/LossIncrease in Accounts PayableIncrease in Accounts Receivable

Increase in Accounts ReceivableIncrease in InventoriesDividends PaidDecrease in InventoriesDecrease in Accounts ReceivableNet Income/LossIssuance of Common StockIssuance of Long-term debtDepreciationIncrease in Accounts PayableDecrease in Accounts PayablePurchase of Fixed AssetsSale of Fixed Assets

Financing ActivitiesCash from InvestmentCash from FinancingCash from OperationsOperating ActivitiesNet Change in CashInvesting Activities

Investing ActivitiesFinancing ActivitiesCash from FinancingOperating ActivitiesCash from InvestmentNet Change in CashCash from Operations