ICK ON the 1CHOWING icon D oroer t0 CODy IS Conrents intoa spreaosneet) Partial Income Statement Year Ending 2017 Sales revenue $350, 000 Cost of goods sold $140,000 Fixed costs $43.000 $28,000 $40.000 Seling general and administrative expenses Deprnciation (Cick on the tolowng icon t in order to copy its contents into a sproadsheet) Partial Balance Sheet 1201/2016 ASSETS LIABILITIES Cesh $16,000 Notes payable $20,000 Accounts payable $40,000 Long-term detit $360,000 OWNERS EQUITY $142.000 Htained eamngs S2 000 Commen stock $14,000 S1R.000 Accounts iecevable es $100 000 rent anses Accamulated dprecton tng $130.000
The operating cash flow is? The capital spending is? The change in net
Capital spending is termed as the amount spent by the firm in the year to purchase or maintain the fixed assets. These include both tangible and intangible assets.
(1): Operating Cash flow:
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Cash flow statement For the year ended 2017 |
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Particulars |
Amount($) |
Amount($) |
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Cash flow from operating activities |
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Net Income (Note 1) |
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$93,000 |
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Add: Non cash and non-operating items which have already been debited to profit and loss account |
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Depreciation |
$46,000 |
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Operating profit before working capital changes |
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$139,000 |
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Add: Increase in current liabilities and decrease in current assets |
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|
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Accounts Receivable |
$9,000 |
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Accounts payable |
$5,000 |
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Less: Increase in current assets and decrease in current liabilities |
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Inventories |
($5,000) |
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Notes payable |
($2,000) |
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Net increase or decrease in working capital |
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$7,000 |
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Cash generated from Operations |
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$146,000 |
Note 1: Calculation of Net Income:
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Particulars |
Amount($) |
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Sales revenue |
$350,000 |
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Less: Cost of goods sold |
($140,000) |
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Gross profit |
$210,000 |
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Less: Fixed costs |
($43,000) |
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Selling, general and administrative expenses |
($28,000) |
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Depreciation |
($46,000) |
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|
|
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Net income |
$93,000 |
(2): Capital spending:
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Fixed asset in 2017 |
$448,000 |
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Fixed asset in 2016 |
$368,000 |
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Difference (A) |
$80,000 |
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Add: Depreciation for 2017 (B) |
$46,000 |
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Capital spending (A+B) |
$126,000 |
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(3): Change in net working capital:
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Current Assets |
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Accounts receivable |
$19,000 |
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Inventories |
$53,000 |
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Cash |
$26,000 |
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Total current Assets (A) |
$98,000 |
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Current Liabilities |
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Notes payable |
$12,000 |
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Accounts payable |
$24,000 |
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Total Current Liabilities (B) |
$36,000 |
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Net Working Capital (A-B) |
$62,000 |
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