Dollar Company

Statement of Cash flows

For the year ended December 31, 2017
Cash Flow from operating activities:
Income before taxes 828,500
Adjustments for
Depreciation 290,000
Interest expense 60,000
Decrease in Accounts receivable 110,000
Increase in inventory -200000
Decrease in accounts payable -90000
Cash generated from operating activities 998,500
Income taxes paid 223,350
Net cash from operating activities 775150
Cash flows from investing activities:
Purchase of building and equipment -1880000
Net cash used in investing activities -1880000
Cash flows from financing activities
proceeds from borrowings 1,000,000
Proceeds from issuance of shares 550,000
Payments of cash dividends -259950
Net cash from financing activities 1,290,050
Net increase in cash and cash equivalents 185,200
Cash and cash equivalents, beginning 42,000
Cash and cash equivalents, ending 227,200

Solutions:
Income before taxes: Interest expense:
579950/70% 100000*8%*9/12

Income tax paid: Payment of cash dividend:

828500-579950-25200 579950-320000