Ashley Cleveland Company Statement of Cash flows For The Year Ended December 31, 2004 (Direct Method)

Cash Flow from Operating Activities: Net Income Adjustment to reconcile net income to cash income: Add: Depreciation / Amortization Less: Amortization of bonds premium Less: Gain on sale of land Less: Gain on sale of short-term investment Less: Increase in account receivable Less: Increase in inventory Add: Decrease in prepaid rent Less: Increase in Prepaid insurance Less: Increase in office supplies Add: Increase in wages payable Less: Decrease in accounts payable Add: Increase in taxes payable NET CASH PROVIDED BY OPERATING ACTIVIES $ 40,500 ($ 5,550) ($ 8,000) ($ 4,000) ($ 4,550) ($ 7,000) $ 9,000 ($ 1,200) ($ 250) $ 2,000 ($ 5,000) $ 1,000 $16,950 $75,800 $ 58,850

Cash flow from Investing Actives:

Sale of land (W1) Sale of short term investment (W2) Purchase of equipment NET CASH FLOW FROM INVESTING ACTIVITIES Cash Flow from Financing Activities: Proceeds from issuance of common stock (W3) Payment of long-term debt Dividends Paid NET CASH FLOW FROM FINANCIAL ACTIVITIES NET INCREASE IN CASH Add: Beginning cash balance Ending cash balance

$ 58,000 $ 14,000 ($ 125,000) ($ 53,000)

$ 22,500 ($ 10,000) ($ 24,300) ($ 11,800) $ 11,000 $ 4,000 $ 15,000

Working 1-

Sale of land = ($ 175,000 - $ 125,000) + $ 8,000 = $58,000

Working 2 Sale of short term investment = ($ 30,000 - $ 20,000) + $ 4,000 = $ 14,000

Working 3

Proceeds from issuance of common stock = ($ 240,000 - $ 220,000) + ($ 20,000 - $ 17,500) = $ 22.500

Assignment
Prepared By:
Zannatul Ferdous Ariba Id: 0910209030 ACT 330. Section: 05

Prepared For:
Shushmita Jahangir Lecturer

Date: 31/03/2011

North South University