1. Please prepare a correct 2012 statement of cash flows
Solution
2012 statement of cash flows
Particulars Amount $ Amount $
Cash , beginning of the year 24116
Cash Flow from operating activities
Net Income 45804
Add Depreciation 49000
Add Interest 15000
Less Accounts Receivables increased (2752)
Less Inventory increased (1408)
Add Accounts Payable increased 3916
Less Notes Payable decreased (5500)
Add Others increased 3429
Net cash generated for operating activities 107489 107489
Cash Flow from Investing Activities
Purchase of Plant & Machinery (33805 + 49000) (82805)
Interest paid (15000)
Net Cash usage from Investing Activities (97805) (97805)
Cash Flow from Financing Activities
Dividend paid (27000)
Long term Debt added 18000
Net Cash usage from Financing activities (9000) (9000)
Cash, end of year 24800