Question: I am trying to write the Cash flow statement to verify correct cash flow. I would like to know which items of Income statement and
I am trying to write the Cash flow statement to verify correct cash flow. I would like to know which items of Income statement and Balance sheet should complete each cash flow.


INCOME STATEMENT 2018 2019 2020 Sales $2, 120,000 $2,247,200 $2,382,032 Costs of Goods Sold $1,484,000 $1,573,040 $1,667,422 Depreciation $180,000 $182,000 $185,800 Interest Payments on Debt $50,000 $40,000 $30,000 Interest Earned on Cash and Marketable Securities $5,068 $5,058 $11,236 Profit Before Tax $411,068 $457,218 $510,045 Taxes $102,767 $114,305 $127,511 Profit After Tax $308,301 $342,914 $382,534 Dividends $92,490 $102,874 $114,760 Change in Retained Earnings $215,811 $240,040 $267,774 BALANCE SHEET 2018 2019 2020 Cash $253,411 $252,906 $561,783 Accounts Receivable $169,600 $179,776 $190,563 Current Assets $423,011 $432,682 $752,346 Fixed Assets: At Cost (Gross PPE) $2,200,000 $2,420,000 $2,662,000 Less Accumulated Depreciaton $380,000 $562,000 $747,800 Net Fixed Assets $1,820,000 $1,858,000 $1,914,200 Total Assets $2,243,011 $2,290,682 $2,666,546 Current Liabilities $127,200 $134,832 $142,922 Debt $800,000 $600,000 $400,000 TOTAL LIABILITIES $927,200 $734,832 $542,922 Stock Common Stock $900,000 $900,000 $1,200,000 Accumulated Retained Earnings $415,811 $655,850 $923,624 SHAREHOLDER EQUITY $1,315,811 $1,555,850 $2, 123,624 Total Liabilities and Equity $2,243,011 $2,290,682 $2,666,546STATEMENT OF CASH FLOWS 2018 2019 2020 Cash flows from operating activities Profit After Tax Add back depreciation Change in Accounts Receivable Change in Current Liabilities Net cash from operating activities Cash flow from investing activities Acquisitions of fixed assets--capital expenditures Purchases of investment securities Net cash used in investing activities Cash flow from financing activities Net proceeds from borrowing activities Net proceeds from stock issues, repurchases Dividends paid Net cash from financing activities Net Increase in Cash and Cash Equivalents Cash balances at end of previous year Cash Balances at end of current year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
