Will someone please go over the cash flow statement I've worked on?

Question

Hi everyone.

I've been working on this cash flow statement and I'm finding it really hard to get the balances right. Here is the link:

http://www.box.net/shared/949049o0sw

This is the additional data I've based the statement on:

a. Net income was 135,984. notes and accounts receivable due after one year relate to operations.

b. depreciation and amortization totaled 234,230.

c. No "other" noncurrent assets (which relate to investing acitivites) were purchased this period,

d. No property, plant, and equipment were sold during the period. No goodwill was acquired or sold.

e. Proceeds from issuance of long-term debt were 3,867,357 and principal payments were 1,954,675 (combine the current maturities with the long-term debt in your analysis).

f. no dividends were declared or paid.

g. ignore the deferred tax asset and deferred income taxes accounts.

Thank you so much!

Answer 1

Indirect Method Cash Flow Statement

Cash flows from operating activities

Net income €135,984

Adjustments for:

Depreciation €234,230

Changes in working capital:

Increase in AR (€105,658)

Increase in inventories (€202,420)

Increase in other current assets (€257,185)

Increase in AP €233,176

Increase in accrued liabilities €136,193

Decrease in income taxes payable (€35,716)

Net cash from operating activities €138,604

Cash flows from investing activities

Purchase of property and equipment (€897,330)

Net cash used in investing activities (€897,330)

Cash flows from financing activities

Proceeds from issuance of long-term debt €3,867,357

Repayments of long-term debt (€1,954,675)

Redemption of short-term debt (€830,000)

Net cash from financing activities €1,082,682

Net increase in cash and cash equivalents €323,956

Addition error in current assets at May 31 €2,000*

CCE at beginning of period €438,893

CCE at end of period €764,849

*there is a casting error in the data given. The total current assets at May 31 should be €4,910,290 and not €4,908,290 as given. It is not possible to tell which component of current assets contained the error.