IT'S NOT OK TO BE OK

CASH FLOW STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Cash Flow from Operating Activities

Cash Receipts from Customers 6,220,000
Cash Payments to Suppliers 4,140,000
Cash Payments to Employees 720,000
Cash Payments for Purchase of Prepaid Assets 560,000
Interest Payments 150,000
Income Tax Payments 270,000 5,840,000
Net Cash Flow from Operating Activities 380,000

COMPUTATIONS:

Cash Receipts from Customers

(+) Net Sales 6,100,000
(+) Beginning Accounts Receivable 120000
(-) Ending Accounts Receivable -
6,220,000

Cash Payments to Suppliers

(+) Cost of Goods Sold 3,700,000
(+) Ending Inventory 280,000
(-) Beginning Inventory -
(+) Beginning Accounts Payable 160,000
(-) Ending Accounts Payable -
4,140,000

Cash Payments to Employees

(+) Beginning Salaries Payable -
(-) Ending Salaries Payable 100,000
(+) Salaries Expense 820,000
720,000

Cash Payments for Purchase of Prepaid Assets

(+) Ending Prepaid Rent, Prepaid Insurance, etc. 180,000
(+) Expired Rent, Expired Insurance, etc. 380,000
(-) Beginning Prepaid Rent, Prepaid Insurance, etc. -
560,000

Interest Payments
(+) Beginning Interest Payable 30,000
(-) Ending Interest Payable -
(+) Interest Expense 120,000
150,000
Income Tax Payments
(+) Beginning Income Tax Payable -
(-) Ending Income Tax Payable 18,000
(+) Income Tax Expense 288,000
270,000
 IT'S NOT OK TO BE OK
CASH FLOW STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020

Cash Flow from Operating Activities

Profit before income tax 672,000
Adjustments for:
Depreciation expense 220,000 (+) Non-Cash Expenses
Gain on Sale of Equipment 100,000 (-) Non-Operating Gains
Decrease in account receivable 120,000 (+) Decrease in Current Assets
Increase in inventory 280,000 (-) Increase in Current Assets
Increase in prepaid insurance 180,000
Increase in salaries payable 100,000 (+) Increase in Current Liabilities
Increase in income tax payable 18,000
Decrease in accounts payable 160,000 (-) Decrease in Current Liabilities
Decrease in interest payable 30,000
Net Cash Flow from Operating Activities 380,000
Non-Cash Expenses
Non-Operating Gains
Decrease in Current Assets
Increase in Current Assets

Increase in Current Liabilities

Decrease in Current Liabilities