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Canapi 04 Activity 2

The Mega Company statement of cash flows for the year ended December 31, 201A shows operating activities provided $300,000 in cash from $1,000,000 in cash received from customers offset by payments for expenses and taxes. Investing activities used $400,000 for land purchases. Financing activities provided $800,000 from share issuances offset by note repayments and dividends. Overall cash increased $700,000. The Ram Company statement of cash flows for the year ended December 31, 201B shows operating activities provided $1,120,000 from net income adjusted for non-cash items. Investing activities used $756,000 for equipment, patent and land purchases/exchanges. Fin

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61 views

Canapi 04 Activity 2

The Mega Company statement of cash flows for the year ended December 31, 201A shows operating activities provided $300,000 in cash from $1,000,000 in cash received from customers offset by payments for expenses and taxes. Investing activities used $400,000 for land purchases. Financing activities provided $800,000 from share issuances offset by note repayments and dividends. Overall cash increased $700,000. The Ram Company statement of cash flows for the year ended December 31, 201B shows operating activities provided $1,120,000 from net income adjusted for non-cash items. Investing activities used $756,000 for equipment, patent and land purchases/exchanges. Fin

Uploaded by

sora fps
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mega Company

Statement of Cash Flows


For the Year Ended December 31, 201A
Cash flows from operating activities
Cash received from customers 1,000,000
Cash dividends received from investments 150,000
Cash paid for wages and other operating expenses (600,000)
Cash paid for insurance (50,000)
Cash paid for taxes (200,000)
Net cash provided by operating activities 300,000

Cash flows from investing activities


Cash paid from purchase of land (400,000)
Net cash provided by investing activities (400,000)

Cash flows from financing activities


Cash received from issuing shares 2,000,000
Cash paid to retire notes (1,100,000)
Cash for dividends (100,000)
Net cash used in financing activities 800,000
Net increase in cash 700,000
Cash balance, December 31, 20XX 1,700,000
Cash balance, December 31, 201A 2,400,000
Ram Company
Statement of Cash Flows
For the Year Ended December 31, 201B
Cash flows from operating activities
Net Income 1,108,000
Adjustments for
Depreciation Expense 214,000
Loss on sale of investments 96,000
Gain on retirement of notes (184,000)
Increase in inventory (134,000)
Decrease in accounts receivable 100,000
Decrease in accounts payable (80,000)
Net cash provided by operating activities 1,120,000
Cash flows from investing activities
Cash received from sale of land 230,000
Cash paid for purchase of equipment (450,000)
Cash paid for purchase of patent (396,000)
Ordinary share exchanged for land (140,000)
Net cash provided by investing activities (756,000)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 1,056,000
Cash received from issuance of note 500,000
Cash paid to retire bonds (555,000)
Cash for dividends (600,000)
Net cash used in financing activities 401,000
Net increase in cash 765,000
Cash balance, Decmber 31, 201A 480,000
Cash balance, Decmber 31, 201B 1,245,000

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