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Information for XYZ Co.

Account Description	December 31, 2017	December 31, 2016
Assets
Cash and Cash Equivalents	45,000	13,000
Accounts Receivable	91,000	88,000
Equipment	139,000	22,000
Accum. Deprec. Equipment	(17,000)	(11,000)
Total	258,000	112,000
Liabilities & Stockholders Equity
Accounts Payable	20,000	15,000
Bonds Payable	100,000	0
Common Stock	100,000	80,000
Retained Earnings	38,000	17,000
Total	258,000	112,000

Additional Information

(A) Net income for 2017 was $44,000.

(B) New equipment was purchased in 2017 but not was sold

(C) Cash dividends of $23,000 were declared and paid in 2017

(D) $100,000 of equipment was purchased by the issuance of Bonds Payable

Step 1 Complete the Financing Activities section of the Cash Flow Statement. Financing Activities represent either amounts that:

(a) are received from owners (i.e., capital contributions from owners or proceeds from sale of the companys stocks or bonds to 3rd parties), or distributions of cash back to owners (i.e., dividends paid to owners)

(b) a company borrows from a bank or other lender, and the principal payments made by the company to repay the loans (interest paid by the company is charged to interest expense which is a reduction of Net Income in the Operating Activities section)

Net Cash Provided by (Used in) Financing Activities

Step 2 Determine if there are any Non-Cash Investing and Financing Activities. Non-Cash Investing and Financing Activities represent transactions where there was some investing and financing transaction that did not require any outlay of cash. So some long-term asset, long-term liability, or stockholders equity was impacted through a non-cash transaction.

These non-cash transactions get reported as Non-Cash Investing and Financing Activities below the body of the cash transactions section.

Examples of non-cash investing and financing activities are:

(a) a company acquiring property or equipment by issuing some of its stock or bonds,

(b) issuing stock (rather than paying cash) to pay off some of the companys debt.

Step 3 Prepare the Cash Flow Statement.

XYZ Co.

Cash Flow Statement

For the Year Ended December 31, 2017

Operating Activities
Net Cash Provided by (Used In) Operating Activities

Investing Activities
Net Cash Provided by (Used in) Investing Activities

Financing Activities
Net Cash Provided by (Used in) Financing Activities

Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents Beginning of Year
Cash and Cash Equivalents End of Year
Non-Cash Investing and Financing Activities:

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