Managerial Accounting
Cash Flow Statement Amount Calculations - Chapter 14
	End of	Beginning				Current
Balance sheet	year	of year	Change		Income statement	year
Cash	86,000	54,000	32,000	O	Sales	800,000
Accounts receivable	112,000	128,000	(16,000)	O	Cost of goods sold	(600,000)
Inventory	141,000	118,000	23,000	O	Gross profit	200,000
Prepaid expenses	18,000	21,000	(3,000)	O	Operating expenses	(130,000)
Total current assets	357,000	321,000	36,000		Income from operations	70,000
Equipment, at cost	298,000	240,000	58,000	I	Other income & (expense):
Less: Accum. depreciation	(100,000)	(76,000)	(24,000)	O	Interest expense	(7,500)
Net equipment	198,000	164,000	34,000		Interest income	2,000
Total assets	555,000	485,000	70,000		Gain on sale of equipment	4,500
					Total other expense	(1,000)
Accounts payable	89,000	71,000	18,000	O	Income before taxes	69,000
Interest payable	6,000	7,000	(1,000)	O	Income tax expense	(20,000)
Dividends payable	3,000	7,000	(4,000)	F	Net income	49,000
Total current liabilities	98,000	85,000	13,000
Long-term debt	225,000	260,000	(35,000)
Total liabilities	323,000	345,000	(22,000)
Common stock	75,000	50,000	25,000	F
Additional paid-in capital	100,000	70,000	30,000	F
Retained earnings	57,000	20,000	37,000	O
Total stockholders' equity	232,000	140,000	92,000
Total liabilities and equity	555,000	485,000	70,000
Refer to the balance sheets and income statement above to answer the following questions.
Also, circle the type of activity (operating, investing or financing) at the right.
						Activity
Additional Information:
1. Depreciation expense is only included in operating expenses.
2. There were purchases of equipment of $76,000 during the year.						I
3. Equipment with a book value of $14,000 was sold during the year.
4. There were principal payments on long-term debt (notes payable) during the year of $95,000.						F
(A) Calculate the amount of proceeds from the sale of equipment during the year.						I
(B) Calculate the amount of depreciation expense during the year.						O
(C ) Calculate the amount of proceeds from borrowing new long-term debt.						F
(D) Calculate the amount common stock issued during the year.						F
(E) Calculate the amount of dividends paid during the year.						F
Statement of Cash Flows - Indirect Method
Cash Flow from Operating Activities:
Net income
Depreciation expense
Gain on sale of equipment
Change in accounts receivable
Change in inventory
Change in prepaid expenses
Change in accounts payable
Change in interest payable
Net cash flow from operating activies					-
Cash Flow from Investing Activities:
Proceeds from the sale of equipment
Purchase of equipment
Net cash flow from investing activities					-
Cash Flow from Financing Activities:
Proceeds from issuance of long-term debt
Principal payments on long-term debt
Proceeds from issuance of common stock
Dividends paid
Net cash flow from financing activities					-
Net increase / (decrease) in cash					-
Cash at beginning of year
Cash at end of year					$ -
Additional Questions:
What is the amount of free cash flow for this company for the year?
What is the amount for "Cash paid for interest" during the year?
What is the amount for "Cash paid for income taxes" during the year?