Cash flow statement (Indirect Method) Year 1 Amount Amount Particular Cash Flow from Operating Activities Net Income Less: Decrease in Current Liabilities and Increase in Current Assets Increase in Inventory Increase in Supplies Increase in Prepaid Expenses Increase In Loan Fee Increase in Advertising & Marketing Net Cash Flow from operating Activities (A) Cash flow from Investing Activities Sale of Equipment & fixtures Rent Paid Net Cash flow from Investing Activity (B) Cash Flow from Financing Activities Raising of Bank Loan Reduction of owners' equity Net Cash Flow from Financing Activities (C) Net Cash Flow [A+B+C] Add: Opening Cash & Cash Equivalent Closing Cash & Cash Equivalent 16300 1500 300 3300 1500 800 -8200 -4200 20000 -5000 8900 -12400 15000 11500 43500 55000 Amount Amount Year 2 17115 0 0 0 0 0 0 -4410 0 0 17115 -4410 0 12705 55000 67705

Cash flow statement (Indirect Method) Year 1 Amount Amount Particular Cash Flow from Operating Activities Net Income Less: Decrease in Current Liabilities and Increase in Current Assets Increase in Inventory Increase in Supplies Increase in Prepaid Expenses Increase In Loan Fee Increase in Advertising & Marketing Net Cash Flow from operating Activities (A) Cash flow from Investing Activities Sale of Equipment & fixtures Rent Paid Net Cash flow from Investing Activity (B) Cash Flow from Financing Activities Raising of Bank Loan Reduction of owners' equity Net Cash Flow from Financing Activities (C) Net Cash Flow [A+B+C] Add: Opening Cash & Cash Equivalent Closing Cash & Cash Equivalent 16300 1500 300 3300 1500 800 -8200 -4200 20000 -5000 8900 -12400 15000 11500 43500 55000 Amount Amount Year 2 17115 0 0 0 0 0 0 -4410 0 0 17115 -4410 0 12705 55000 67705

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

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