Construct a Statement of Cash Flows including: Net cash flows from operating activities. Net cash flows from investing activities. Net cash flows from financing activities. Net change in cash.
Construct a Statement of
- Net cash flows from operating activities.
- Net cash flows from investing activities.
- Net cash flows from financing activities.
- Net change in cash.
CASH FLOW STATEMENT
1 . CASH FLOW FROM OPERATING ACTIVITY
NET INCOME - 3,55,000
ADJUSTMENT TO RECONCILE ET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITY
ADD : DEPRECIATION EXPENSES - 92,000
ADD : DEPLETION EXPENSE - 8,000
ADD : AMORTIZATION OF INTANGIBLE ASSETS - 11,000
LESS : ACCOUNT RECEIVABLE INCREASE - (19,000)
LESS : INVENTORY INCREASE - (50,000)
ADD : PREPAID EXPENSE DECREASE - 3,000
ADD : ACCOUNT PAYABLE INCREASE - 34,000
TOTAL ADJUSTMENT - 69,000
NET CASH PROVIDED BY OPERATING ACTIVITY (3,55,000 + 69,000 ) = 4,24,000
2 . CASH FLOW FROM INVESTING ACTIVITY
CASH REALISED FROM SALE OF LONG TERM INVESTMENTS - 73,000
CASH PAID TO PURCHASE OF LONG TERM ASSETS - (6,21,000)
NET CASH USED IN INVESTING ACTIVITY (5,48,000)
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