Hi, do you agree with the net cash flow in investing activities amount, or did you receive a different amount? I got $682,000, but the last reviewer thinks the total is -$534,000. Also, could you let me know if I need the retained earnings section for my assignment to calculate cash flows? I am trying to get my cashflow statement to equal the difference in cash of $86,000. Assets 20X1 20X0 Difference Current assets Cash $450,000.00 $364,000.00 $86,000 Accounts receivable—net 692,000 625,000 $67,000 Inventory 723,000 610,000 $113,000 Prepaid expenses 50,000 70,000 ($20,000) Total current assets 1,915,000 1,669,000 $246,000 Long-term investments 150,000 20,000 $130,000 Property, plant, and equipment 1,622,000 815,000 $807,000 Less: Accumulated depreciation -100,000 -75,000 ($25,000) 1,522,000 740,000 $782,000 Total assets $3,587,000 $2,429,000 $1,158,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $399,000 $451,000 ($52,000) Accrued expenses 185,000 179,000 $6,000 Dividends payable 50,000 0 $50,000 Total current liabilities 634,000 630,000 $4,000 Notes payable—due 20X4 750,000 0 $750,000 Stockholders’ Equity Common stock 1,400,000 1,300,000 $100,000 Retained earnings 803,000 499,000 $304,000 Total stockholders’ Equity $2,203,000.00 $1,799,000.00 $404,000 Total liabilities and stockholders’ equity $3,587,000 $2,429,000 $1,158,000 as Income statement 20X1 20X0 Difference Net credit sales $7,200,000 $6,500,000 $700,000 Cost of goods sold 4,320,000 3,900,000 $420,000 Gross profit 2,880,000 2,600,000 $280,000 Operating expenses (including income taxes) 2,376,000 2,145,000 $231,000 Net income $504,000 $455,000 $49,000 sdsds The cash flow statement of Berthas Bridal Boutique on year ended on 20x1 Particulars Amount $ Amount $ Cash flows from operating activities: Net income from the income statement $ 49,000.00 Add: Non-cash expenses Depreciation $ 25,000.00 Dividend payable $ 50,000.00 Total $ 75,000.00 Cash flow before working capital changes $ 124,000.00 Adjustment for working capital changes: Increase in accounts receivable $ (67,000.00) Increase in inventory $(113,000.00) Decrease in prepaid expenses $ 20,000.00 Decrease in accounts payable $ (52,000.00) Increase in accrued expenses $ 6,000.00 Cash generated from operations $ (82,000.00) Extraordinary items - Net cash flows from operating activities (A) $ (82,000.00) Cash flows from financing activities: Proceeds from the issues of notes payable $ 750,000.00 Proceeds from the issues of common stocks $ 100,000.00 Net cash flows from financing activities (B) $ 850,000.00 Cash flows from investing activities: Purchase of Long-term investment $(130,000.00) Purchase of property, plant, and equipment $(782,000.00) Transfer to retained earnings $ 230,000.00 Net cash used in investing activities (C) $(534,000.00) Net cash increase $ 86,000.00 Add: Beginning cash balance $ 364,000.00 Ending cash and cash equivalent $ 450,000.00

Hi, do you agree with the net cash flow in investing activities amount, or did you receive a different amount? I got $682,000, but the last reviewer thinks the total is -$534,000. Also, could you let me know if I need the retained earnings section for my assignment to calculate cash flows? I am trying to get my cashflow statement to equal the difference in cash of $86,000. Assets 20X1 20X0 Difference Current assets Cash $450,000.00 $364,000.00 $86,000 Accounts receivable—net 692,000 625,000 $67,000 Inventory 723,000 610,000 $113,000 Prepaid expenses 50,000 70,000 ($20,000) Total current assets 1,915,000 1,669,000 $246,000 Long-term investments 150,000 20,000 $130,000 Property, plant, and equipment 1,622,000 815,000 $807,000 Less: Accumulated depreciation -100,000 -75,000 ($25,000) 1,522,000 740,000 $782,000 Total assets $3,587,000 $2,429,000 $1,158,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $399,000 $451,000 ($52,000) Accrued expenses 185,000 179,000 $6,000 Dividends payable 50,000 0 $50,000 Total current liabilities 634,000 630,000 $4,000 Notes payable—due 20X4 750,000 0 $750,000 Stockholders’ Equity Common stock 1,400,000 1,300,000 $100,000 Retained earnings 803,000 499,000 $304,000 Total stockholders’ Equity $2,203,000.00 $1,799,000.00 $404,000 Total liabilities and stockholders’ equity $3,587,000 $2,429,000 $1,158,000 as Income statement 20X1 20X0 Difference Net credit sales $7,200,000 $6,500,000 $700,000 Cost of goods sold 4,320,000 3,900,000 $420,000 Gross profit 2,880,000 2,600,000 $280,000 Operating expenses (including income taxes) 2,376,000 2,145,000 $231,000 Net income $504,000 $455,000 $49,000 sdsds The cash flow statement of Berthas Bridal Boutique on year ended on 20x1 Particulars Amount $ Amount $ Cash flows from operating activities: Net income from the income statement $ 49,000.00 Add: Non-cash expenses Depreciation $ 25,000.00 Dividend payable $ 50,000.00 Total $ 75,000.00 Cash flow before working capital changes $ 124,000.00 Adjustment for working capital changes: Increase in accounts receivable $ (67,000.00) Increase in inventory $(113,000.00) Decrease in prepaid expenses $ 20,000.00 Decrease in accounts payable $ (52,000.00) Increase in accrued expenses $ 6,000.00 Cash generated from operations $ (82,000.00) Extraordinary items - Net cash flows from operating activities (A) $ (82,000.00) Cash flows from financing activities: Proceeds from the issues of notes payable $ 750,000.00 Proceeds from the issues of common stocks $ 100,000.00 Net cash flows from financing activities (B) $ 850,000.00 Cash flows from investing activities: Purchase of Long-term investment $(130,000.00) Purchase of property, plant, and equipment $(782,000.00) Transfer to retained earnings $ 230,000.00 Net cash used in investing activities (C) $(534,000.00) Net cash increase $ 86,000.00 Add: Beginning cash balance $ 364,000.00 Ending cash and cash equivalent $ 450,000.00

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter14: Statement Of Cash Flows (cashflow)

Section: Chapter Questions

Problem 5R

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Question

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Assets
	20X1	20X0	Difference
Current assets
Cash	$450,000.00	$364,000.00	$86,000

Accounts receivable—net	692,000	625,000	$67,000

Inventory	723,000	610,000	$113,000

Prepaid expenses	50,000	70,000	($20,000)

Total current assets	1,915,000	1,669,000	$246,000

Long-term investments	150,000	20,000	$130,000

Property, plant, and equipment	1,622,000	815,000	$807,000

Less: Accumulated depreciation	-100,000	-75,000	($25,000)
	1,522,000	740,000	$782,000
Total assets	$3,587,000	$2,429,000	$1,158,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$399,000	$451,000	($52,000)
Accrued expenses	185,000	179,000	$6,000
Dividends payable	50,000	0	$50,000
Total current liabilities	634,000	630,000	$4,000
Notes payable—due 20X4	750,000	0	$750,000
Stockholders’ Equity
Common stock	1,400,000	1,300,000	$100,000
Retained earnings	803,000	499,000	$304,000
Total stockholders’ Equity	$2,203,000.00	$1,799,000.00	$404,000
Total liabilities and stockholders’ equity	$3,587,000	$2,429,000	$1,158,000

Income statement
	20X1	20X0	Difference
Net credit sales	$7,200,000	$6,500,000	$700,000
Cost of goods sold	4,320,000	3,900,000	$420,000
Gross profit	2,880,000	2,600,000	$280,000
Operating expenses (including income taxes)	2,376,000	2,145,000	$231,000
Net income	$504,000	$455,000	$49,000

sdsds

The cash flow statement of Berthas Bridal Boutique on year ended on 20x1
Particulars	Amount $	Amount $
Cash flows from operating activities:
Net income from the income statement		$ 49,000.00
Add: Non-cash expenses
Depreciation	$ 25,000.00
Dividend payable	$ 50,000.00
Total		$ 75,000.00
Cash flow before working capital changes		$ 124,000.00
Adjustment for working capital changes:
Increase in accounts receivable		$ (67,000.00)
Increase in inventory		$(113,000.00)
Decrease in prepaid expenses		$ 20,000.00
Decrease in accounts payable		$ (52,000.00)
Increase in accrued expenses		$ 6,000.00
Cash generated from operations		$ (82,000.00)
Extraordinary items		-
Net cash flows from operating activities (A)		$ (82,000.00)
Cash flows from financing activities:
Proceeds from the issues of notes payable		$ 750,000.00
Proceeds from the issues of common stocks		$ 100,000.00
Net cash flows from financing activities (B)		$ 850,000.00
Cash flows from investing activities:
Purchase of Long-term investment		$(130,000.00)
Purchase of property, plant, and equipment		$(782,000.00)
Transfer to retained earnings		$ 230,000.00
Net cash used in investing activities (C)		$(534,000.00)
Net cash increase		$ 86,000.00
Add: Beginning cash balance		$ 364,000.00
Ending cash and cash equivalent		$ 450,000.00

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