a)4 f)1 k)1

b)3 g)5 l)2

c)4 h)4 m)2
d)3 i)5
e)1 j)4
 Lopez Inc.
Statement of Cash Flows
For the Year Ended December 31, 2019

Cash flows from operating activities

Net income $ 34,000
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation expense $ 6,000
Increase in accounts receivable -3000
Increase in accounts payable 5000 8000
Net cash provided by operating activities 42000
Cash flows from investing activities
Purchase of equipment -17000
Cash flows from financing activities
Issuance of common stock 20000
Payment of cash dividends -13000
Net cash provided by financing activities 7000
Net increase in cash 32000
Cash at beginning of year 13000
Cash at end of year $ 45,000
A) YOON CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2019

Cash flows from operating activities

Net income ₩ 160,000
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation expense ₩ 17,000
Loss on sale of investments ₩ 7,000
Decrease in accounts receivable ₩ 5,000
Decrease in current liabilities -₩ 17,000 ₩ 12,000
Net cash provided by operating activities ₩ 172,000
Cash flows from investing activities
Sale of investments
[(74,000 – 52,000) – 7,000] ₩ 15,000
Purchase of equipment -₩ 58,000
Net cash used by investing activities -₩ 43,000
Cash flows from financing activities
Payment of cash dividends -₩ 50,000
Net increase in cash ₩ 79,000
Cash at beginning of year ₩ 78,000
Cash at end of year ₩ 157,000

B) Free Cash Flow Analysis

Net cash provided by operating activities ₩ 172,000
Less: Purchase of equipment -₩ 58,000
Dividends -₩ 50,000
Free cash flow ₩ 64,000