Joshtine Company

Statement of Cash Flows

For the Year Ended December 31, 2017

Cash flows from operating activities

Net Income 1,380,000
Adjustments to reconcile
net income to net cash flow
from operating activities:
Depreciation 500,000
Gain on Sale of investment (50,000)
Changes in current operating
assets and liabilities:
Increase in Inventories (160,000)
Increase in Accounts Payable 210,000
Decrease in Patent (200,000)
Net cash flow from operating activities 1,900,000

Cash flow from investing activities

Cash from sale of investments 270,000
Cash from sale of equipment 300,000
Less: Cash paid for purchase of trade securities (600,000)
Long-term investments (2,200,000)
Net cash flow used for investing activities (2,230,000)

Cash flow from financing activities

Cash from sale of common stock 440,000
Less: Cash paid for dividends (480,000)
Cash paid for short-term debt 650,000
Net cash flow used for financing activities 610,000

Increase in Cash 280,000

Cash at the beginning of the year 200,000
Cash at the end of the year 480,000