2014 2013 Change Cash flows from Operating Activities: NI + D + L - G

ASSETS: Net Income $100.000

Cash $ 73.000 $ 22.000 $ 51.000 Add: Current Assets ↑ Deduct
C Accounts Receivable (A/R) $ 87.000 $ 76.000 $ 11.000 Decrease in Inventories $21.000 Current Assets ↓ Add
C Inventories $ 170.000 $ 191.000 $ (21.000) Deduct: $21.000
F Land $ 72.000 $ 100.000 $ (28.000) Increase in A/R $ 11.000 Current Liabilities ↑ Add
F Equipment $ 260.000 $ 200.000 $ 60.000 Decrease in A/P $ 10.000
D Accumulated Depreciation $ (66.000) $ (32.000) $ (34.000) Depreciation Expense $ 34.000 Current Liabilities ↓ Deduct
$ 596.000 $ 557.000 $ 39.000 Gain in Sale of Equipment $6.000
$ 61.000
LIABILITIES & STOCKHOLDER'S EQUITY: Net Cash Flow in Operating Activities $60.000
C Accounts Payable (A/P) $ 37.000 $ 47.000 $ (10.000)
F Bonds Payable $ 150.000 $ 210.000 $ (60.000) Cash flows from Investing Activities:
F Common Stock (S1 Par) $ 216.000 $ 174.000 $ 42.000 Add:
Retained Earnings $ 193.000 $ 126.000 $ 67.000 Sale of Equipment $36.000
$ 596.000 $ 557.000 $ 39.000 Sale of Land $28.000
Deduct: $64.000
Additional Information:
1. Net income for 2014 was $100.000. $0.000
2. Cash dividends of $33.000 were declared and paid. Net Cash Flow in Investing Activities $64.000
Cash flows from Financing Activities:
3. Bonds payable amounting to $60.000 were redeemed for cash $60.000. Add:
4. Common stock was issued for $42.000 cash. Issuance of Common Stock $42.000
5. Equipment that cost $50.000 and had a book value of $30.000 was sold $42.000
for $36.000 during 2014: Land was sold at cost. Deduct:
Dividends Paid $33.000
Redemption of Bonds $60.000
$93.000
Net Cash Flow in Financing Activities ($51.000) $73.000
Increase/Decrease in Cash $ 51.000
Cash, Beginning of the Year $ 22.000
Cash, End of the Year $ 73.000