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CP 14 - 8 Assume the following income statement and balance sheet information :" Service revenue ( all cash ) $175 Operating expenses Salaries (...

1557015837619111637509783843215.jpghow do you calculate cash flow from operating activities

1557015837619111637509783843215.jpg

CP 14 - 8
Assume the following income statement and balance sheet
information :"
Service revenue ( all cash )
$175
Operating expenses
Salaries ( all cash )
85
Net income
590
2020
2019
Current assets
Cash
$1 , 250
$1 , 500
Short-term invest .
100
200
51, 350
$1, 800
Liabilities
Borrowings
500
1 , 000
Stockholders' equity
Common stock
200
300
Retained earnings
550
500
750
800
$1 , 350
$1, 800
Other information : The short-term investments are riskless and will be
converted to a known amount of cash in 60 days . Borrowings are non -
current . No gain or loss occurred when common stock was
repurchased .
Required :"
1 . Calculate cash flow from operating activities .
2. Prepare the 2020 statement of changes in equity .
3 . Calculate cash flow from financing activities .
4. ( Appendix) Prepare a cash flow table . Show that cash effects net to
a $450 outflow .

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