Dollar Company

Statement of Cash Flow

For year ended December 31, 2018

Cash flows from operating acts.

Profit before income tax 828 500
Adjustments for:
Depreciation expense 290 000
Interest expense 60 000
Operating income before WC changes 1 178 500
Decrease in A/R 110 000
(Increase) in inventory (200 000)
Decrease in A/P (90 000)
Cash generated from operating acts. 998 500
Income taxes paid 223 350
Net cash from operating activities 775 150
Cash flows from investing acts.
Purchase of equipment (1 880 000)
Cash flows from financing acts.
Issue of ordinary share capital 550 000
Issue of bonds at par 1 000 000
Cash dividends paid (259 950) 1 290 050
Net increase increase in cash 185 200
Add cash balance, January 1 42 000
Cash balance, December 31 227 200

PBT (579 950/.70) 828 500

Dividends paid (579 950 - 320 000) 259 950
Income Taxes paid (828 500 *.30)- 25 200 223 350
(18 A)
Plains and Prints
Statement of Cash flows
For year ended December 31, 2018

Cash flow from operating activities

Collection from customers 4 240 000
Payment to suppliers (2 680 000)
Payment of accrued expenses (880 000)
Cash flow from operations before interest & income tax 680 000
Payment of interest (60 000)
Payment of income tax (325 000)
Net cash flow from operating activities 295 000
Cash flow from investing activities
Sale of land 125 000
Sale of equipment 170 000
 Purchase of equipment (830 000) (535 000)
Cash flow from operating activities
Redemption of bonds payable (200 000)
Issue of shares 800 000
Payment of dividends (275 000) 325 000
Increase in cash during the period 85 000
Cash balance, December 31, 2017 185 000
Cash balance, December 31, 2018 270 000
(18 B)
Plains and Prints
Statement of Cash flows
For year ended December 31, 2018

Profit before interest and income tax 2 030 000 2 030 000
Adjustments for:
Depreciation expense 165 000
175 000
Loss on sale of equipment 10 000
(Increase) in trade receivables (210 000)
(480 000)
(Increase) in inventories (270 000)
Decrease in prepaid expenses 10 000 10 000
Decrease in A/P (85 000) (85 000)
Increase in accrued expenses 50 000
730 000
Cash flow from operations before interest & income tax 680 000
Interest paid (60 000)
(385 000)
Income tax paid (325 000)
Net cash flow from operating activities 1 995 000

PBIT:
Sales revenue 4 450 000
5 400 000
Income before tax 950 000
(minus)
COGS (2 325 000)
(3 430 000)
OPEX (1 105 000)
(plus)
Interest expense 60 000 60 000
2 030 000