They have provided you with the following financial information: Q&A Aviation Balance Sheet (000s)Assets20X120X2Liabilities and Equity20X120X2Cash1067440Accounts Payable654889Accounts Receivable823708Notes Payable23002030Inventory12961038Accruals267275Total Current Assets31862186Total Current Liabilities32213194 Plant, Property and Eq.2166323804Long Term Debt64775044Accumulated Dep’n(6314)(7682) Fixed Assets (Net)1534916122Common Stock350350 Retained Earnings84879720 Total Equity883710070Total Assets1853518308Total Liabilities and Equity1853518308 Q&A Aviation Income Statement (000s)20X120X2Sales2893430499Cost of Goods Sold1997822225Gross Profit89568274Expenses36123867Depreciation11451368EBIT41993039Interest523478EBT36762561Tax (30%)1103768Net Income25731793Dividends Paid520560Additions to Retained Earnings205312331. Prepare the cash flow statement for 20X2

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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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They have provided you with the following financial information:

Q&A Aviation Balance Sheet (000s)
Assets	20X1	20X2	Liabilities and Equity	20X1	20X2
Cash	1067	440	Accounts Payable	654	889
Accounts Receivable	823	708	Notes Payable	2300	2030
Inventory	1296	1038	Accruals	267	275
Total Current Assets	3186	2186	Total Current Liabilities	3221	3194

Plant, Property and Eq.	21663	23804	Long Term Debt	6477	5044
Accumulated Dep’n	(6314)	(7682)
Fixed Assets (Net)	15349	16122	Common Stock	350	350
			Retained Earnings	8487	9720
			Total Equity	8837	10070
Total Assets	18535	18308	Total Liabilities and Equity	18535	18308

Q&A Aviation Income Statement (000s)	20X1	20X2
Sales	28934	30499
Cost of Goods Sold	19978	22225
Gross Profit	8956	8274
Expenses	3612	3867
Depreciation	1145	1368
EBIT	4199	3039
Interest	523	478
EBT	3676	2561
Tax (30%)	1103	768
Net Income	2573	1793
Dividends Paid	520	560
Additions to Retained Earnings	2053	1233

1. Prepare the cash flow statement for 20X2

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Step 1

Meaning of Cash Flow Statement

In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills.

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