ACC 230 Week 5 Checkpoint Preparing a Statement of Cash Flows

ACC 230 Week 5 Checkpoint Preparing a Statement of Cash Flows

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Statement of cash flows (Indirect method) Little Bit Inc. Particulars Amount Amount Cash flows from operating activities: Net Income Before Interest and taxes 8,300 Add depreciation 18,000 Net Income before working capital changes 26,300 Adjustments for working capital changes: Less Increase in Accounts receivables -6,500 Less Increase in Inventories -8,500 Less Increase in prepaid expenses -4,000 Add Increase in Accounts payable 2,000 Less Decrease in Accrued liabilities -16,000 Less Taxes paid (3,500 + 800 - 4,000) -300 Cash used in operating activities -7,000 Cash flows from Investing activities: Purchase of Plant and equipment -6,000 Purchase of Investments -1,000 Cash used in Investing activities -7,000 Cash flows from Financing activities: Long term debt raised 17,000 Issue of Common Stock 15,000 Interest paid -2,000 Cash flows from Financing activities 30,000 Net Increase in Cash and cash equivalents 16,000 Beginning cash and cash equivalents 24,000 Ending cash and cash equivalents 40,000
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