Statement of Cash Flow

For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.

The company's balance sheets and income statement follow.

Additional Information on Year 2011 Transactions:

1. The loss on the cash sale of equipment was $2,100 (details in b).

2. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.

3. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance.

4. Borrowed $6,000 cash by signing a short-term note payable.

5. Paid $45,000 cash to reduce the long-term notes payable.

6. Issued 3,000 shares of common stock for $11 cash per share.

7. Declared and paid cash dividends of $63,000.

Statement of Cash Flow

Net Income $______

ADD Depreciation Exp__________________ $______ Amortization______________________ $______ Decrease in______________________ $_______ Decrease in______________________ $_______ Increase in_______________________ $_______ Loss in__________________________ $_______

DEDUCT Increase in_______________________ $_______ Increase in_______________________ $_______ Decrease in______________________ $_______ Decrease in______________________ $_______ Gain on_________________________ $________ Cash provided/used from operating activities $________

INVESTING Cash received from _______________ $______ Cash received from_______________ $_______ Cash paid for____________________ $_______ Cash paid for____________________ $_______ Cash provided/used from investing activities $________

FINANCING Cash received from_______________ $______ Cash received from_______________ $______ Cash paid for____________________ $______ Cash paid for____________________ $______ Cash provided/used from financing activites $_______

Increase/(decrease) in cash $_______

Beginning cash balance $________

ENDING cash balance $________