Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash)$ 85 Net income $90 2020 2019 Current assets Cash $1,250 $1,600 Short‐term invest. 100 200 $1,350 $1,800 Liabilities Borrowings 600 1,000 Stockholders’ equity Common stock 200 300 Retained earnings 550 500 750 800 $1,350 $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: Calculate cash flow from operating activities .2.Prepare the 2020 statement of changes inequity .3.Calculate cash flow from financing activities.
CP 14–8 Assume the following income statement and balance sheet information:
Service revenue (all cash) $175
Operating expenses Salaries (all cash)$ 85
Net income $90
2020 2019
Current assets
Cash $1,250 $1,600
Short‐term invest. 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Stockholders’ equity
Common stock 200 300
750 800
$1,350 $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:
- Calculate
cash flow from operating activities
.2.Prepare the 2020 statement of changes inequity
.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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4 . (Appendix) Prepare a
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