Statement of cashflow (Other (Not Listed) Sample)

Cash flows Assignment
Student’s Name
Affiliate Institution
Course
Tutor
Date
Below is information from the Biddle Company income statement and current assets and current liabilities from the balance sheet as of December 31, 2017 and 2018.
Questions
Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the direct method.
(Workings)
Cash receipt from Customers

Accounts Receivable, Beginning

$8,800

Add: Sales Revenue

$1,42,200

Accounts Receivable, Ending

$ (7,100)

Cash receipt from Customers

$1,43,900

Cash Paid to Suppliers

Add: Cost of Goods Sold

$57,000

Accounts Payable, Ending

$(5,900)


$58,700

Add: Inventory, Ending

$3,480

Less: Inventory, Beginning

$(2,290)

Cash Paid to Suppliers

$59,890

‘Cash Paid to Employees

Salaries Payable, Beginning

$850

Add: Salaries Expenses

$33,000

Salaries Payable, Ending

$(1,180)

Cash Paid to Employees

$32,670

Cash Paid to Utilities

Utilities Payable, Beginning

$310

Add: Utilities Expenses

$4,300

Utilities Payable, Ending

$(520)

Cash paid to utilities

$4,090

‘Cash Paid to Insurance



Prepaid insurance, Beginning

$(580)

Insurance Expense

$5,300

Prepaid insurance, Ending

$410

Accounts Payable, Beginning

$7,600

Cash Paid to insurance

$5,130

‘Cash Paid to Rent

Prepaid Rent, Beginning

$330

Rent Expenses

$10,500

Prepaid Rent, Ending

$520

Cash Paid to Rent



$ 10,690

Biddle Company
Income Statement (Direct method)
For the year ended 31 December 2018

Cash flows from operating activities



Cash receipts from customers

$143,900

 

Cash paid to suppliers

(59,890)

 

Cash paid to employees

(32,670)

 

Cash paid to utilities

(4,090)

 

 Cash paid to insurance

 (5,130)

 

Interest paid

(5,100)

 

Cash paid to rent

(10,690)

 

Net cash from operating activities

 

$26,330

Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the indirect method.
Biddle Company
Income Statement (Indirect method)
For the year ended 31 December 2018

Cash flows from operating activities



Net Income


 $7,500

Adjustment for Non cash items:


 

Depreciation Expense

19,500




19,500