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?
Thank you!
-SOLVED-
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?
Thank you!
-SOLVED-
Attachments
-
22.4 KB Views: 421
-
16.5 KB Views: 439
Last edited: