Homework help for financial accounting

Posted on 2013-11-27 11:47:00 in Finance by ASHLEE M

Warsaw Corporation Statement of Cash Flows For the Year Ended December 31, 2014

Cash Flows from Operating Activities

Net Income $111,000

Adjustments to Reconcile Net Income to Net

Cash Flows from Operating Activities

Depreciation Expense $ 55,800

Gain on Sale of Furniture and Fixtures (7,000)

Changes in Current Assets and Current Liabilities

Decrease in Accounts Receivable 24,800

Decrease in Merchandise Inventory 103,000

Decrease in Prepaid Rent 1,000

Decrease in Accounts Payable (57,000)

Decrease in Income Taxes Payable (5,000) 115,600

Net Cash Flows from Operating Activities $226,600

Cash Flows from Investing Activities

Sale of Furniture and Fixtures $ 23,800

Purchase of Furniture and Fixtures (39,600)

Net Cash Flows from Investing Activities (15,800)

Cash Flows from Financing Activities

Repayment of Notes Payable ($ 30,000)

Issue of Notes Payable 54,000

Dividends Paid (6,000)

Net Cash Flows from Financing Activities 18,000

Net Increase (Decrease) in Cash $228,800

Cash at Beginning of Year 50,000

Cash at End of Year $278,800



Schedule of Non-cash Investing and Financing Transactions:

Conversion of Bonds Payable into Common Stock $200,000





(a) What is the total amount of cash flows from debt and stockholder equity transactions?

(b) What is the total amount of cash flows from long-term asset transactions?

(c) What is the total amount of cash flows from day to day activities from running the business?

(d) Which of the three sections of the statement of cash flows provides the most important information about Cash Flow? Why?

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