UTAMA COMPANY

Statement of Cash Flow

For the Year Ended December 31,2014
(Direct Method)

Cash flows from operating activities

Cash receipt :
Cash received from customer $1,152,450 a
Dividends received 2,400 $1,154,850
Cash payments :
Cash paid to suppliers $765,000 b
Cash paid for operating expenses $226,350 c
Taxes paid $38,400 d
Interest paid $57,300 $1,087,050
Net cash provided by operating activities $67,800

Cash flows from investing activities

Sale of short-term investment $12,000
Sale of land 58,000
Purchase of equipment (125,000)
Net cash used by investing activities ($55,000)

Cash flows from financing activities

Proceed from issuance of ordinary shares $27,500
Principal payment on long-term debt (10,000)
Dividends paid (24,300)
Net cash used by financing activities ($6,800)

Net increase in cash $6,000

Cash, January 1, 2014 4,000
Cash, December 31, 2014 $10,000

a sales revenue $1,160,000

increase in accounts receivable (7,550)
cash received from customers $1,152,450

b cost of goods sold $748,000

increase in inventory 7,000
decrease in accounts payable 10,000
cash paid to suppliers $765,000

c operating expense $276,400

depreciation/amortization expense (40,500)
decrease in prepaid rent (9,000)
increase in prepaid insurance 1,200
 increase in office supplies 250
increase in wages payable (2,000)
cash paid for operating expenses $226,350

d income tax expense $39,400

increase income taxes payable (1,000)
taxes paid $38,400

e interest expense $51,750

decrease in bond premium 5,550
interest paid $57,300