Using the financial statement provided, prepare a complete Statement of Cash Flows that includes both the direct method and the indirect method for summarizing cash flow from operating activities. Note that to complete the assignment you will need to calculate items such as dividends paid (Retained Earnings₂₀₁₉ + Net income₂₀₂₀ – Retained Earnings₂₀₂₀) and capital expenditures (Net PP&E₂₀₁₉ – Book Value of PP&E Sold₂₀₂₀ – Depreciation Expense₂₀₂₀ – Net PP&E₂₀₂₀).

Footnote

During the year, the company received cash of $538 when it sold PP&E with a net book value of $459, which gave rise to the $79 gain that appears on the income statement.

Check figures: Net cash flow from operations = $13,924; net cash flow from investments = $(5,442); and net cash flow from financing = $(6,858). If “cash” used for leased assets and “cash” received from lease liabilities had been included, net cash flow from investments would have been $(26,302) and net cash flow from the financing would have been $14,002.

Assets	2019	2020			2020
Cash & equivalents	$4,059	$5,683		Sales	$256,776
Marketable securities	2,522	2,373		Less: Cost of goods sold	158,719
Accounts receivable, net	17,631	19,617		Gross profit	98,057
Inventories	16,450	15,516		Less: Selling, gen. & admin. exp	81,699
Other current assets	4,581	7,113		Less: Depreciation expenses	4,371
Total current assets	45,243	50,302		Operating profit (EBIT)	11,987
Property, plant, & equipment, gross	26,869	28,934		Less: Interest expense	3,035
Less: Accumulated depreciation	15,520	16,890		Other income (expense)	454
Property, plant, & equipment, net	11,349	12,044		Gain/(loss) on sale of assets	79
Right-of-use leased assets	0	20,860		Earnings before tax	9,485
Other long-term investments	56,140	56,744		Less: Income tax expense	2,366
Other noncurrent assets	83,724	82,499		Net income	$7,119
Total assets	$196,456	$222,449
Liabilities and Equity
Current portion of long-term debt	1,985	4,364
Current operating lease liabilities	0	1,934
Accounts payable	20,316	23,093
Taxes payable	1,939	1,830
Other accrued expenses	10,711	12,133
Deferred revenue	6,586	7,870
Other current liabilities	2,472	2,079
Total current liabilities	44,009	53,303
Long-term debt	71,444	64,699
Long-term operating lease liabilities	0	18,926
Deferred taxes	7,677	8,294
Other long-term liabilities	14,783	14,057
Total liabilities	137,913	159,279
Com. stock and add. paid-in capital	45,317	45,816
Retained earnings	41,136	46,283
Less: Treasury stock	27,910	28,929
Total equity	58,543	63,170
Total liabilities and equity	$196,456	$222,449

Answer rating: 100% (QA)

Particulars Amount Net profit 7119 Add Depreciation Expense 4371 Interest Expense 3... View the full answer