# Cash Flow Statement

A company had the following changes in its balance sheet accounts Net sales \$500 inc A/R 20 dec A/P 40 inc Inv 30 Sale common stock 100 Repayment debt 10 dep 2 net income 100 interest exp on debt 5 The companys cash flow from operations is a \$10 b \$12 c \$92 d \$192 The companys cf from investing is a \$0 b \$2 c \$100 d \$110 If the ending cash balance is \$200, the beginning cash balance was a \$90 b \$92 c \$110 d \$198

B A and 3rd question should be 98…from my calculations…but don’t see it there… i should goto sleep its 4am…maybe im hallucinating

yeah, theres a 98 in Q3. Can you show your workings please? Thanks

Question 1 NI + Dep - Inc AR - Dec AP - Inc Inv = 100 + 2 - 20 - 40 - 30 = 12 (B) Question 2 A because there is no investing activities Question 3 Beginning Cash Balance = Ending Cash Balance - (CFO + CFI + CFF) = 200 - (12 + 0 + 90) = 98

What about the interest expense on debt?

since it is indirect method, already included in NI.

agreed with above. CFO = 100 + 2 - 20 - 40 - 30 = 12 CFI = 0 CFF = 100 - 10 = 90 BB Cash = 98 Change in Cash = 102 EB Cash = 200 don’t need sales and interest expense in this one and don’t have enough info to do direct method CF statement.