CALMA, GAZELLE ANNE A.

A. INDIRECT METHOD
Foley Inc.
Statement Of Cash Flows
For The Period Ended December 31, 2019

Cash Flows from Operating Activities:

Net Income
Increase in Trade Accounts Receivable
Decrease in Inventories
Decrease in Salaries Payable
Decrease in Trade Accounts Payable
Decrease in Income Tax Payable
Depreciation
Increase in Deferred Tax Liability
Net Cash Provided by Operating Activities

B. DIRECT METHOD
Foley Inc.
Statement Of Cash Flows
For The Period Ended December 31, 2019

Cash Flows from Operating Activities:

Cash Received from Customers
Cash Payment to Creditors
Operating Expenses Paid
Income Tax Paid
Net Cash Provided by Operating Activities

Sales 380000
Less: Trade Accounts Receivable 15000
Cash Received from Customers

Cost of Goods Sold

Less: Inventories
Total
Less: Trade Accounts Payable
Cash Payment to Creditors

Operating Expenses
Add: Salaries Payable
Total
Less: Depreciation
Operating Expense Paid

Income Taxes
Add: Income Tax Payable
Total
Less: Increas in Income Tax Payable
Icome Tax Paid
 42000
15000.00
19400
8000
12000
3000
16700
2600

365000
193600
76300
28400
66700
JOURNAL ENTRIES

1 Income Summary 58300

Retained Earnings 58300

2 Deprecaition Expense 19000

Accumulated Depreciation 19000

3 Amortization of Patent 5000

Patent 5000

4 Retained Earnings 20000

Cash 20000

5 Cash 10000
Patent 10000

6 Land 30000
Cash 30000

7 Building 43000
Cash 43000

8 Accounts Receivable 10600

Sales 10600

9 Cost of Goods Sold 20000

Inventory 20000

10 Prepaid Expenses 700

Cash 700

11 Purchases 6000
Accounts Payable 6000

12 Accrued Liabilities 9000

Cash 9000

13 Cash 65000
Bonds Payable 65000

14 Treasury Shares 7000

Cash 7000
 Reyser Corporation
Statement of Cash Flows
For the Period Ended December 31, 2020

Cash Flows from Operating Activities:

Net Income
Depreciation Expense
Amortization of Patent
Increase in Accounts Receivable
Decrease in Inventory
Increase in Prepaid Expenses
Increase in Accounts Payable
Decrease in Accrued Liabilities
Net Cash Provided by Operating Activities

Cash flows from Investing Activities:

Purchase of Land
Purchase of Building
Sale of Patents
Net Cash Provided by Investing Activities

Cash Flows from Financing Activities:

Sale of Bonds
Purchase of Treasury Shares
Payment of Cash Dividends
Net Cash Provided by Financing Activities
Net Increase in Cash and Cash Equivalents
Add: Cash and Cash Equivalents, January 1, 2020
Cash and Cash Equivalents, December 31, 2020
58300