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I have completed the first 3 questions. I would like help with the final question 4- preparing a cash flow table.

I have completed the first 3 questions. I would like help with the final question 4- preparing a cash flow table.

FINANCIAL ACCOUNTING
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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I have completed the first 3 questions.

I would like help with the final question 4- preparing a cash flow table.

CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries (all cash) Net income Current assets Cash Short-term invest. Liabilities Chapter 14 Assignment Borrowings Stockholders' equity Common stock Retained earnings $175 85 $90 2020 $1,250 100 $1,350 600 200 550 750 $1,350 2019 $1,600 200 $1,800 1,000 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow.
Transcribed Image Text:CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries (all cash) Net income Current assets Cash Short-term invest. Liabilities Chapter 14 Assignment Borrowings Stockholders' equity Common stock Retained earnings $175 85 $90 2020 $1,250 100 $1,350 600 200 550 750 $1,350 2019 $1,600 200 $1,800 1,000 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow.
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