Determine and constructing financial statement of cash flows

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Reference no: EM132481019

Question 1: Determine and constructing the financial statement of cash flows. Assume the tax rate is 42.5% and all taxes are current. Interest expense is $5,000.

Example Corporation
Statement of Cash Flows
For the Year Ended December 31, 2018

Cash Flow from Operating Activities
Net income	523.000
Add: depreciation expense	4.000
Increase in accounts receivable	(6.000)
Decrease in inventory	9.000
Decrease in accounts payable	(5.000)
Cash provided (used) in operating activities	25.000
Cash Flow from Investing Activities Capital expenditures	(28.000)
Proceeds from sale of property	7.000
Cash provided (used) by investing activities	(21,000)
Cash Flow from Financing Activities Borrowings of long-term debt	10.000
Cash dividends	(5.000)
Purchase of treasury stock	(8.000)
Cash provided (used) by financing activities	(3.000)
Net increase in cash	1.000
Cash at the beginning of the year	1.200
Cash at the end of the year	2.200

Reference no: EM132481019

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