Sources and Uses of Fund Statement

FIN 260

Question 1 Identify the following as sources or uses of cash flows: i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) Sales fixed asset Purchases of new plant Issued new bon Increase in inventory Dividend payment Net income Depreciation expenses Decrease in accrual expenses Issued new shares Decrease in account payable Apply for new loan Increase in retained earnings Decrease in account receivable

Question 2 Given the following balance sheets and selected data from the income statement, a) Prepare a source and use funds statement for this company 2002 RM 2,000 12,000 14,000 27,000 ( 16,000) 39,000 RM3,000 1,000 10,000 5,000 20,000 39,000 2001 RM 1,600 5,200 15,600 20,000 (14,400) 28,000 RM2,500 1,500 5,000 5,000 14,000 28,000

Cash Accounts Receivable Inventory Fixed Assets Accumulated depreciation Total Assets Accounts Payable Accrued expense Notes payable-long term Common stock Retained earnings Total Liabilities & capital

Net Income was RM7,000 and depreciation was RM1,600

Sources and Uses of Fund Statement

FIN 260

Question 3 a) Prepare sources and uses statement for the year ended 2004 SETIA BUDI CORPORATION BALANCE SHEET Cash Account Receivable Inventory Total current assets Plant Accumulated depreciation Total Assets Account payable Salaries payable Accrued expenses Total current liabilities Debentures Paid up capital Retained earnings Total liabilities and Equity 2004 25 50 100 175 365 (140) 400 30 5 15 50 100 175 75 400 2005 20 40 80 140 200 (40) 300 60 10 30 100 25 150 25 300

INCOME STATEMENT FOR YEAR 2004 Sales COGS Gross Profit Expenses Net Income 350 100 250 200 50