Solution #1- surname (S,W,G, Z)

Income Statement ( Indirect Method )

As At : October 31, 2021

Description Amount Amount

Cashflows from Operating Activities

Profit Before Tax 223500

Add : Depriciaton Expense 26000

Less : Gain on Sale of Equipment 10000

Cashflows Before Working Capital Changes 239500

Increase in Accounts Receivable ( 240000 - 180000 ) (60000)

Decrease in Inventory ( 220000 - 240000 ) 20000

Decrease in Accounts Payble ( 285000 - 305000 ) (20000)

Increase in Accrued Liabilities ( 305000 - 285000 ) 20000

199500

Less : Income Tax 38900

Cashflows from Operating Activities 160600

Cashflows from Investing Activities

Purchase of Equipment (286000)

Sale of Equipment 100000

Cashflows from Investment Activities (176000)

Cashflows from Financing Activities

Issue of Bonds 60000

Issue of Common Stock 34500

Payment of Dividend (24100)

Purchase of Treasdury Stock (100000)

Cashflows from Financing Activities (29600)

Net Cashflows (45000)

Add : Begining Cash Balance 320000

Ending Cash Balance 275000

Solution #2- (K, Q, M, F)

Statement of Cash Flows

For the Year ended Oct 31, 2021

A. Cash Flows from Operating Activity

Net Income 207500

Adjustments to reconcile net income to net cash flows from Operating Activities

Income statement items not affecting cash

Depreciation expense 24000

Loss on sale of Equipment 2500

Changes In Current Operating Assets Liabilities

Decrease in Accounts Receivable 60000

Decrease in Prepaid Exp -20000

Increase in Accounts Payable 20000

Decrease in Accrued Liabilities -20000

Net cash flow from Operating activities 274000

B. Cash flows from Investing Activities

-
Cash paid for the Purchase of Equipment 243000

Cash received from Sale Of Equipment 76500

Net Cash Used in Investing activities -166500

C. Cash Flows from Financing activities

Cash received from Issuance of Bonds payable 100000

Cash paid for the Purchase of Treasury stock -90000

Cash received from stock issuance 40000

-
Cash paid for Dividends 112500

Cash flows from Financing activities -62500

Net Increase (Decrease) in Cash [A+B+C] 45000

Cash balance at prior Year-end 275000

Cash balance at Current Year-end 320

Solution #3- (A, P, I, E, V)