Missing link in the textbook?

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Hi! I have put myself wondering whether there is a mistake in the exercise or I am missing something:

I am provided with the following(please refer to attachments)

I am asked to prepare cash flow statement which I did, however cash balance does not balance for some reason, here is my solution:

Net income 48k

Adjustments, cash flow from operating activities
Depreciation 70k
Amortization 10k
Gain on sale (17k)

Changes in current assets and liabilities

acc receivables 10k
inventory (80k)
prepaid expenses 6k
accounts payables (95k)
accrued liabilities (5k)
notes payable (60k)

Total cash flow from operating activities (113,000)
Investing activities

Purchase of investments (58k)
Sale investments 75k

Financing activities 17,000

Bonds issuance 120k
Mortgage payable 120k
Repayment on notes (90k)
Notes payable issue 30k
Paid dividends (18k)
Treasury stock (10k)

total 152k

Total cash flows 56,000
Whilst:

Cash at the beginning 152,800
End of the year 128,800
--
Tot 24,000


What am I missing? :confused:
Thank you!

-SOLVED-
 

Attachments

Last edited:

Triest123

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Hi! I have put myself wondering whether there is a mistake in the exercise or I am missing something:

What am I missing? :confused:
Thank you!
Net income 48k

Adjustments, cash flow from operating activities
Depreciation 70k
Amortization 10k
Gain on sale (17k)

Changes in current assets and liabilities

acc receivables 10k
inventory (80k)
prepaid expenses 6k
accounts payables (95k)
accrued liabilities (5k)
notes payable (60k)

Total cash flow from operating activities (113,000)

Investing activities
Purchase of investments (58k)
Sale investments 75k

Total cash flow from investing activities 17,000

Financing
Bonds issuance 120k
Repayment on mortgage payable (20k)
Paid dividends (18k)
Treasury stock (10k)

Total cash flow from financing activities 72,000

Net increase / (decrease) in cash (24,000)

Cash at the beginning 152,800
End of the year 128,800
 
Joined
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Thanks, I looked at this through all over again and I noticed that the main mistake was to include ''notes payable(current)'' to operating activities and mortgage payable instead of 120 should be calculated only 20k for that period.

Nonetheless, thank You for the reply! :)
 

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