Indirect Method KM Manufacturing Company

Statement of Cash Flow

For the year ended December 31,2020
Cash flows from the operating activities
Net income 430,000.00
Depreciation 880,000.00
Loss Ion disposal of plan assets 24,000.00
Increase in accounts receivable -165,000.00
Decrease in Inventory 33,000.00
Increase in accounts payable 20,000.00
Net cash provided by operating activities 1,222,000.00
Cash flows from investing activities:
Sales of equipment 270,000.00
Purchase of equipment -750,000.00
Net cash used in investing activities -480,000.00
Cash flows from financing activities:
Dividend paid -200,000.00
Net cash provided by financing activities -200,000.00
Increase in cash and cash equivalent 542,000.00
Add: Cash and cash equivalent - January 1 130,000.00
Cash and cash equivalent- December 31 672,000.00

Direct Method KM Manufacturing Company

Statement of Cash Flow
For the year ended December 31,2020
Cash flows from the operating activities
Cash collectiobs from customers 6,418,000.00
cash payments to operatinf expenses 4,843,000.00
Cash payments to income taxes 353,000.00 5,196,000.00
Net cast provided by operating activities 1,222,000.00
Cash flows from investing activities:
Sales of equipment 270,000.00
Purchase of equipment -750,000.00
Net cash used in investing activities -480,000.00
Cash flows from financing activities:
Dividend paid -200,000.00
Net cash provided by financing activities -200,000.00
Increase in cash and cash equivalent 542,000.00
Add: Cash and cash equivalent - January 1 130,000.00
Cash and cash equivalent- December 31 672,000.00