Tutorial Test 5

Group 7
Members: Nguyễn Huỳnh Minh Khuê - Trịnh Nguyễn
Linh Chi - Hà Quốc Anh -
Nguyễn Gia Quốc Thắng

a)
ZUMBRA COMPANY
Statement of Cash Flows-Indirect Method
For the Year Ended December 31,2017

Cash flows from operating activities

Net income $32,000
Adjustments to reconcile net income to net
cash flow from operating activities:
Depreciation expense $14,500
Increse in account receivable (16,000)
Increase in inventory
Increase in account payable
Decrease in income taxes payable (1,000) (500)
Net cash provided by operating activities 31,500
Cash flows from investing activities
Sale of equipment 8,500
Net cash used by investing activities 8,500
Cash flows from financing activities
Retirement of Bonds (6,000)
Insurance of common stock 4,000
Payment of cash dividends (20,000)
Net cash used by financing activities (22,000)
Net increase in cash 18,000
Cash at beginning of period 20,000
Cash at end of period $38,000

b) Cash provided by operating activities $31,500

Less: Dividends paid (20,000)
Free Cash Flow $11,500