Cash flow statement (Indirect Method) Year 1 Amount Amount Particular Cash Flow from Operating Activities Net Income Less: Decrease in Current Liabilities and Increase in Current Assets Increase in Inventory Increase in Supplies Increase in Prepaid Expenses Increase In Loan Fee Increase in Advertising & Marketing Net Cash Flow from operating Activities (A) Cash flow from Investing Activities Sale of Equipment & fixtures Rent Paid Net Cash flow from Investing Activity (B) Cash Flow from Financing Activities Raising of Bank Loan Reduction of owners' equity Net Cash Flow from Financing Activities (C) Net Cash Flow [A+B+C] Add: Opening Cash & Cash Equivalent Closing Cash & Cash Equivalent 16300 1500 300 3300 1500 800 -8200 -4200 20000 -5000 8900 -12400 15000 11500 43500 55000 Amount Amount Year 2 17115 0 0 0 0 0 0 -4410 0 0 17115 -4410 0 12705 55000 67705
Cash flow statement (Indirect Method) Year 1 Amount Amount Particular Cash Flow from Operating Activities Net Income Less: Decrease in Current Liabilities and Increase in Current Assets Increase in Inventory Increase in Supplies Increase in Prepaid Expenses Increase In Loan Fee Increase in Advertising & Marketing Net Cash Flow from operating Activities (A) Cash flow from Investing Activities Sale of Equipment & fixtures Rent Paid Net Cash flow from Investing Activity (B) Cash Flow from Financing Activities Raising of Bank Loan Reduction of owners' equity Net Cash Flow from Financing Activities (C) Net Cash Flow [A+B+C] Add: Opening Cash & Cash Equivalent Closing Cash & Cash Equivalent 16300 1500 300 3300 1500 800 -8200 -4200 20000 -5000 8900 -12400 15000 11500 43500 55000 Amount Amount Year 2 17115 0 0 0 0 0 0 -4410 0 0 17115 -4410 0 12705 55000 67705
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 5E: Cash flows from operating activitiesindirect method The net income reported on the income statement...
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Question
In the
![Cash flow statement (Indirect Method)
Year 1
Amount Amount
Particular
Cash Flow from Operating Activities
Net Income
Less: Decrease in Current
Liabilities and Increase
in Current Assets
Increase in Inventory
Increase in Supplies
Increase in Prepaid Expenses
Increase In Loan Fee
Increase in Advertising & Marketing
Net Cash Flow from operating
Activities (A)
Cash flow from Investing Activities
Sale of Equipment & fixtures
Rent Paid
Net Cash flow from
Investing Activity (B)
Cash Flow from Financing Activities
Raising of Bank Loan
Reduction of owners' equity
Net Cash Flow from
Financing Activities (C)
Net Cash Flow [A+B+C]
Add: Opening Cash &
Cash Equivalent
Closing Cash & Cash Equivalent
16300
1500
300
3300
1500
800
-8200
-4200
20000
-5000
8900
-12400
15000
11500
43500
55000
Year 2
Amount Amount
17115
0
0
0
0
0
0
-4410
0
0
17115
-4410
0
12705
55000
67705](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04df1633-7a0f-4a4e-9a88-1ff879bc55c4%2F6f04ebba-2092-4a52-b957-ae25f15d7558%2Faq461jc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cash flow statement (Indirect Method)
Year 1
Amount Amount
Particular
Cash Flow from Operating Activities
Net Income
Less: Decrease in Current
Liabilities and Increase
in Current Assets
Increase in Inventory
Increase in Supplies
Increase in Prepaid Expenses
Increase In Loan Fee
Increase in Advertising & Marketing
Net Cash Flow from operating
Activities (A)
Cash flow from Investing Activities
Sale of Equipment & fixtures
Rent Paid
Net Cash flow from
Investing Activity (B)
Cash Flow from Financing Activities
Raising of Bank Loan
Reduction of owners' equity
Net Cash Flow from
Financing Activities (C)
Net Cash Flow [A+B+C]
Add: Opening Cash &
Cash Equivalent
Closing Cash & Cash Equivalent
16300
1500
300
3300
1500
800
-8200
-4200
20000
-5000
8900
-12400
15000
11500
43500
55000
Year 2
Amount Amount
17115
0
0
0
0
0
0
-4410
0
0
17115
-4410
0
12705
55000
67705
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