|
Net Income
|
|
$200
|
From the income statement.
|
|
|
|
|
|
|
Add: Non-cash items:
|
|
|
|
|
Depreciation
|
|
100
|
Ending accumulated
depreciation less beginning accumulated depreciation from the
balance sheet. Represents a non-cash item.
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
Beginning
|
$200
|
|
From the balance
sheet.
|
|
Ending
|
400
|
|
From the balance
sheet.
|
|
B - E
|
|
-200
|
Subtract ending accounts
receivable from beginning accounts receivable. Represents sales
that were made on account and money has not yet been collected.
|
|
Inventory
|
|
|
|
Beginning
|
200
|
|
From the balance
sheet.
|
Ending
|
300
|
|
From the balance
sheet.
|
B - E
|
|
-100
|
Subtract ending inventory
from beginning inventory. Represents additional inventory purchased
for sale.
|
|
Accounts payable
|
|
|
|
Ending
|
300
|
|
From the balance
sheet.
|
Beginning
|
100
|
|
From the balance
sheet.
|
B - E
|
|
200
|
Subtract beginning
accounts payable from ending accounts payable. Represents expenses
and inventory purchases charged on account.
|
|
Interest income earned
|
|
20
|
From income statement.
|
|
Interest expense
paid
|
|
-100
|
From income statement.
|
|
|
|
|
|
|
Income tax expense
|
|
-120
|
From income statement.
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
|
Ending
|
$100
|
|
From balance sheet.
|
Beginning
|
100
|
|
From balance sheet.
|
E-B
|
|
--0--
|
|
|
Income taxes paid
|
|
120
|
Add change in income
taxes payable to income tax expense.
|
|
|
|
|
|
|
Cash flow from
|
|
200
|
Total lines above.
|
|
(used for) operations
|
|
=====
|
|
|
|
|
|
|
|
Purchases of equipment
|
|
-100
|
Ending cost of fixed
assets less beginning cost of fixed assets, represents
|
|
|
|
|
|
|
Proceeds from note
payable
|
|
200
|
From "other assumptions"
section.
|
|
|
|
|
|
|
Principle payments
on notes payable
|
|
-300
|
Beginning note payable
less ending note payable less amount of new loans.
|
