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CASH FLOW STATEMENT

Question that needs answering about the cash flow statement: Comment on the company's financial performance with respect to major items affecting cash with detail and explanation.

Also can you check if my cash flow statement is correct below the balance sheet (question) or if it needs modifications. Thank you so much!

Contest Company Comparative Balance Sheet December 31, 2014 and 2015 2015 $63,000 48,000 126,000 108,000 (24,000) $321,000 2014 $24,000 54,000 108,000 90,000 (18,000) $258,000 Assets Cash Accounts Receivable Merchandise Inventory Equipment Accumulated Amortization Total Liabilities and Equity Accounts Payable Taxes Payable Dividends Payable Common Stock Retained Earnings Total $30,000 12,000 $42,000 6,000 9,000 198,000 66,000 $321,000 180,000 36,000 $258,000 Additional Informa From the Income Statement, there is a net income of $51,000 in 2015. Equipment was amortized for $9,000 in 2015. Equipment costing $21,000 was purchased. Fully amortized equipment that cost $3,000 was discarded; its cost and accumulated amortization were removed from the accounts. 1 500 shares of stock were sold and issued at $12 per share. The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends. Contest Company Statement of Cash Flows - Indirect Method For the year ended December 31, 2015 $ 51,000 $ Operating Activities Net Income Add: Amortization Decrease in Accounts Receivable Increase in Accounts Payable Increase in Dividends Payable Less: Increase in Merchandise Inventory Decrease in Taxes Payable Net Cash Provided by Operations Activities 9,000 6,000 12,000 9,000 36,000 (18,000) (6,000) (24,000) 63,000 Investing Activities Purhcase of equipment Net Cash Used by Investing Activities (21,000) (21,000) (21,000) 18,000 Financing Activities Issued Dividends Paid Common stock shares issues Net Cash Used by Financing Activities Net increase in cash for the period Cash balance on December 31, 2014 Cash balance on December 31, 2015 (3,000) 39,000 24,000 $ 63,000

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