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Cash flow statement

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BUS 7013 - Managerial Accounting Cash Flow Statement Amount Calculations - Chapter 14 End of year Beginning of year Current year Change Income statement Balance sheet Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment, at cost Less: Accum. depreciation Net equipment Total assets 86,000 112,000 141,000 18,000 357,000 298,000 (100,000) 198,000 555,000 54,000 126,000 120,000 21,000 321,000 240,000 (76,000) 164,000 485,000 32,000 (14,000) 21,000 (3,000) 36,000 58,000 (24,000) 34,000 70,000 800,000 (600,000) 200,000 (130,000) 70,000 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income & (expense): Interest expense Interest income Gain on sale of equipment Total other expense Income before taxes Income tax expense Net income (7,500) 2,000 4,500 (1,000) 69,000 (20,000) 49,000 Accounts payable Interest payable Dividends payable Total current liabilities Long-term debt Total liabilities Common stock Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and equity 89,000 5,000 4,000 98,000 225,000 323,000 75,000 100,000 57,000 232,000 555,000 71,000 7,000 7,000 85,000 260,000 345,000 50,000 70,000 20,000 140,000 485,000 18,000 (2,000) (3,000) 13,000 (35,000) (22,000) 25,000 30,000 37,000 92,000 70,000 Refer to the balance sheets and income statement above to answer the following questions. Also, circle the type of activity (operating, investing or financing) at the right. Activity Additional Information: 1. Depreciation expense is only included in operating expenses. 2. There were purchases of equipment of $78,000 during the year. 3. Equipment with a book value of $13,000 was sold during the year. 4. There were principal payments on long-term debt (notes payable) during the year of $92,000. O, I, F O, I, F. O, I, F. (A) Calculate the amount of proceeds from the sale of equipment during the year. Book value of equiment 13000 gain of sales 4,500 Proceeds from sale of eqi 17,500 O, I, F. (B) Calculate the amount of depreciation expense during the year. Acc Dep End Bal 100,000 Acc Dep Beg Bal 76,000 Dep on Assets Sold 7000 Ammt of Dep Exp 31,000 O, I, F (C) Calculate the amount of proceeds from borrowing new long-term debt. End Balance long term debt 225,000 bed bal long term debt 260,000 repayment 92,000 Amt of proceeds from borrowing 57,000 (D) Calculate the amount common stock issued during the year. O, I, F O, I, F Common stock iss 55,000 (E) Calculate the amount of dividends paid during the year. beg retained earnings 20,000 net income 49,000 end retained earnings 57,000 Amt of dividend paid 12,000 Statement of Cash Flows - Indirect Method Cash Flow from Operating Activities: Net cash flow from operating activies Cash Flow from Investing Activities: Net cash flow from investing activities Cash Flow from Financing Activities: Net cash flow from financing activities Net increase / (decrease) in cash Cash at beginning of year Cash at end of year Additional Question: What is the amount of free cash flow for this company for the year

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