STATEMENT OF CASH FLOWS

Net Income 91000

Add: Non-cash items (dep, impairment loss, bad debt
expense, fair value loss on property) 36000
Accumulated Depreciation
Cash flow from Operating Activities
Increase in accounts receivable (16000)
Increase in inventory (21000)
Decrease in prepaid expense 8000
Decrease in accounts payable (21000)
Increase in accrued expense 14000
Increase in income tax payable 42000
6000
Net cash flow from operating activities 6000
133000
Cash flow from investing activities
Long term investment (30000)
Property, plant, and equipment (60000)
(90000)

43000
Cash flow from financing activities
Cash dividend (91000- 65000) (26000)
Bonds payable (50000)
Common stock 20000 (56000)
Net cash flow from financing activities
(13000)
Net change in cash
Net change in cash
Beginning cash flow 20000

Ending cash balance 7000

LESSOR ACCOUNTING
 YEARS PRESENT INTEREST PAYMENTS CLOSING
VALUE BALANCE

1 5710 856 2000 4566

2 4566 685 2000 3251

3 3251 488 2000 1739

4 1739 261 2000 --------

NONCURRENT ASSET
Next present value – current asset
4566 – 1315
3251

CURRENT ASSET
Next installment – interest
2000 – 685
1315

DIRECT METHOD
Cash flow from operating activities
Payment to supplier (20000)
Receipt from customers 10000
Payment to employees/wages/salary (30000)
Cash generated from operations (40000)
Tax paid (5000)
Dividend paid (3000)
Cash inflow/outflow from operating activities (48000)
Cash flow from investing activities
Sale of fixed asset 15000
Cash flow from financing activities
Issue of share 10000
Repayment of loan (1000)