Professional Documents
Culture Documents
103,600
144,000
28,000
Increase in inventory
Increase in accounts payable
Cash generated from operations
(23,600)
18,800
(31,400)
167,200
270,800
239,400
Indirect method
KITE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Profit before tax
Adjustments to reconcile profit to net cash
from operating activities
Depreciation expense
Loss on disposal of equipment
Decrease in merchandise inventory
Decrease in accounts receivable
Decrease in accounts payable
Decrease in prepaid expense
Cash generated from operations
Income tax paid
Net cash from operating activities
$66,450
36,600
2,100
35,700
16,650
(6,000)
2,100
87,150
153,600
(9,450)
144,150
$28,050
(38,250)
(10,200)
$6,000
(45,000)
33,000
(63,000)
(69,000)
64,950
71,550
Direct method
136,500
KITE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Cash received from customers
Cash paid for merchandise inventory
Cash paid for other operating expenses
Income tax paid
Net cash from operating activities
1,083,000
(555,300)
(390,750)
(9,450)
144,150
$28,050
(38,250)
(10,200)
$6,000
(45,000)
33,000
(63,000)
(69,000)
64,950
71,550
136,500