MG770- Financial Reporting, Financial Statement Analysis, and Valuation Homework Assignment Week # 3 __________________________________________________________________________

Create the statement of cash-flow with indirect method

Interpret the result of the statement of cash flow with percentage

Instruction:

[1] Please use the balance sheet as follows to classify each activity (operating, investing, and financing) from the column of different.

[2] please create a new statement of cash-flow from your classification on balance sheet.

[3] The statement of cash flow will be provided to measure the companys cash flow situation. Also, you need to interpret the result of your measurement.

Balance sheet
SILVERT CORPORATION
Balance Sheet
December 31
			Different	Operating	Investing	Financing
	2012	2011
ASSET
Cash	$ 28,000	$ 20,000	$8,000
Receivable (net)	70,000	62,000	$8,000
Other current assets	90,000	73,000	$17,000
Long-term investment	62,000	60,000	$2,000
Plant and equipment (net)	510,000	470,000	$40,000
Total Assets	$ 760,000	$ 685,000	$75,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$ 75,000	$ 70,000	$5,000
Long-term debt	80,000	90,000	($10,000)
Common stock	330,000	300,000	$30,000
Retained earnings	275,000	225,000	$50,000
Total liabilities and stockholders equity	760,000	685,000	$75,000

]2] Create the statement of cash-flow by using the indirect method. Company has net income as starting point of $80,000.

STATEMENT OF CASH FLOW

Operating Activities
Net Income	$ 80,000
Cashflow from Operations
Investing Activities
Cashflow from Investing
Financing Activities
Cashflow from Financing