Net Income 60,000 Retained Earnings

Dep'n Expense 15,000 dividends 40,000 60,000

A/R 5,000 ending 80,000 60,000
A/P -3,000 120,000 120,000
77,000

Purchase of Equipment 26,000

Dividends Paid 40,000
11,000
beg
net income
 Flagstaff Sporting Goods, Inc.
Statement of Cash Flows

Cash Flows from Operating Activities

Net Income 348,300
Adjustments:
Dep'n Expense 34,000
Loss on Sale 10,200
Dec. in A/R 3,000
Inc. in Int. Rec. -2,400
Inc. in Merch. Inv. -7,000
Inc. in Prep. Ins. -1,600
Dec. in Supplies 1,400
Inc. in A/P 1,800
Dec. in Income Taxes Pay. -13,400
Dec. in Int. Payable -1,000
Dec. in Sal. & Wages Pay. -2,800 22,200
370,500
Cash Flows from Investing Activities
Cash received on N/R 5,000
Cash Proceeds on sale of F&F 8,800
Cash Payment on Long Term Inv. -150,000
Cash Payment on new F&F -40,000
Cash Payment on constructing a Bldg. -45,000
-221,200

Cash Flows from Financing Activities

Cash Paid for N/P -38,000
Cash received in Issuance of C.S 20,000
Cash Paid for Dividends -33,500
Cash Paid for Mortgage Pay. -39,270
-90,770
Net increase in Cash 58,530
Cash Beginning 16,470
Cash Ending 75,000

PROBLEM 2

Avon Dry Goods, Inc.

Cash Flows from Operating Activities
For The Year ended December 31,2016
ods, Inc.
Flows