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Chapter 9 g the fo2 lhasaterth Key complete the following statement of cash flows, usin additional information: During 2010, the facility purchased a ow capital equipment for cash for $50,000, interest on lo was $5,000, and principal on long-term debt was $10,000 year, $100,000 in available cash was used to purchase Investment income for the year was $3,000. 3.)Beginning with cash flow from operations calculated in a piece During was $10,oterm ce o Statement of Cash Flows For the Year Ending December 31, 2010 (With Comparative Data for 2009) $110,000 $100,000 Operating Net Income Reconoiliation of Net Income to Cash Flow Add Back: Deprecistion and Amortization 20,000 10,000 (1,000) 1,500 (Increase)Decrease in Prepaid Expenses incresse/Decrease) in Accounts Payable Adjustments to Net Income 32,500 NET CASH FLOW FROM OPERATIONS 132,500 CAPITAL AND RELATED FINANCING Purchase of Capital Equipment Proceeds of Capital Financing interest on Long-Term Debr Principal on Long-Term Debr (5.000) (10,000) NET CASH FROM CAPITAL&RELATED FINANCING INVESTMENTS: Investment Income (15,000) 3,000 NET CASH FROM INVESTMENTS NET INCREASE IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS, BEGINNING OF YEAR 2,000 $119,500 CASH & CASH EQUIVALENTS, END OF YEAR 50,000 $169,500 8 Cash Flow Question B

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