AddieMae Inc.

Statements of Cash Flows

For year ended December 31st, 2016 Analysis:
Cash Flow from Operating Activities: Cash flows were provided
Net Income $ 6,200 activities and financiing acti
investment activites. Addie
Adjustment to reconcile net income: reinvest in equipment and
Add: Depreciation 500 their growth. This caused a
Less: Accounts Receivable (500) flow of $2,300 for the year
is a good indicator that Add
Less: Inventory (6,900) avoid borrowing large amo
Add: Accounts payable 800 to pay their shareholders.
Add: Accrued Liabilities 100
Add: Income Taxes Payable 300
Net Cash Flow from Op. Activities 500

Cash Flow from Investment Activities:

Purchase of Plant and Equipment (700)
Purchase of Long-term investments (300)
Net Cash Flow Used by Inv. Activities (1,000)

Cash Flow from Financing Activities:

Issuance of Common Stock 2,600
Long-term Debt 200
Net Cash Used by Financing Activities 2,800

Net Cash Flow 2,300

Beginning Cash Balance 1,000
Ending Cash Balance $ 3,300
 sh flows were provided by both operating
tivities and financiing activities, but used by
vestment activites. AddieMae is using income to
nvest in equipment and investments to continue
eir growth. This caused an overall increase in cash
w of $2,300 for the year. A positive free cash flow
a good indicator that AddieMae Inc. will be able to
oid borrowing large amounts and they will be able
pay their shareholders.