Cash Flow Statement

ConRadcalendar year-end 2023 and 2022 balance sheets showed the following items:

	2023	2022
Cash	$27,000	$21,000
Accounts Receivable	$43,000	49,000
Inventory	$113,000	97,000
Equipment	96,000	81,000
Accumulated Depreciation	25,000	16,000
Common Shares	135,000	135,000
Retained Earnings	119,000	97,000

Additional information about the corporation's activities during 2023follows:

All merchandise purchases were for cash

All equipment acquisitions were for cash

Total Depreciation Expense$9000

Net Income for 2023$40,000

The company declared $20,000 of cash dividends and paid $18,000.

Preparea statement of cash flows for 2023 using theindirect methodof calculating the net cash provided/used. Include all activities; adjustments and correct terminology for each item (list all inflow/outflow activities).

 

 

Cash flows from operating activities:

Net cash inflow/outflow fromoperating activities

Cash flows from investing activities:

Net cash inflow/outflow frominvesting activities

Cash flows from financing activities:

Net cash inflow/outflow fromfinancing activities

Net increase/decrease in cash

Cash balance at beginning of year

Cash balance at end of year

Answer rating: 100% (QA)

Calculate the net increase in cash by subtracting the cash balance at the beginning of the year from the cash balance at the end of the year Net incre... View the full answer