STATEMENT OF CASH FLOWS

The Balance Sheet accounts for Cheryll Company, a calendar year company contain the following amounts at the end of Year 1 and Year 2:

Assets Year 1 Year 2

Cash $ 32,000 $ 46,000

Accounts Receivable - Net 24,000 18,000

Inventory 42,000 24,000

Prepaid Expenses 10,000 12,000

Property, Plant And Equipment 80,000 110,000

Accumulated Depreciation (64,000) (72,000)

Long-Term Investments _ 20,000 _ 20,000

Total $144,000 $158,000 ======== ========

Liabilities and Stockholders' Equity

Accounts Payable $ 28,000 $ 11,000

Accrued Liabilities 15,000 19,000

Bonds Payable 43,000 52,000

_________ _________

Total Liabilities 86,000 82,000

Common Stock 10,000 10,000

Retained Earnings 48,000 _ 66,000

Total Stockholders' Equity __58,000 _ 76,000

Total Liabilities And

Stockholder's Equity $144,000 $158,000

======== ========

The Income Statement for Cheryll Company for Year 2 is as follows:

Sales $ 216,000

Cost Of Goods Sold 118,000

Gross Profit (Margin) 98,000

Operating Expenses 56,000

Net Income $ 34,000

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Cheryll Company purchased $30,000 of equipment in Year 2. There were $16,000 Cash Dividends paid in Year 2.

Required

1. Enter the missing (blank) amounts in the Statement Of Cash Flows.

INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED BELOW.

Cheryll Company

Statement of Cash Flows

For the Year Ended December 31, Year 2

Cash flows from Operating Activities:

Net Income

$ 34,000

Add (deduct) adjusting items:

8,000

Depreciation Expense

Decrease

in Accounts Receivable

Decrease

in Inventory

Increase

in Prepaid Expenses

Decrease

in Accounts Payable

(17,000)

Increase

in Accrued Liabilities

4,000

Net Cash from Operating Activities

$ 51,000

Cash flow from Investing Activities:

Purchase of Equipment

Net Cash from Investing Activities

(30,000)

Cash flow from Financing Activities:

Issuance of Bonds

$

Payment of Cash Dividends

Net Cash from Financing Activities

(7,000)

Net Increase in Cash

$ 14,000