Question

Presented below is selected financial information for Kingbird, Inc. for December 31, 2017.

Inventory $24,500 Cash paid to purchase equipment $12,000
Cash paid to suppliers 103,900 Equipment 42,700
Buildings 199,800 Service revenue 103,400
Common stock 50,100 Cash received from customers 132,400
Cash dividends paid 7,100 Cash received from issuing common stock 21,800
Cash at beginning of period 7,400

Required:
Prepare the statement of cash flows for Kingbird, Inc..

Answer 1

Cashflow from Operating Activities

Cash received from customers $132,400

Cash paid to suppliers ($103,900)

Cash from Operations $28,500

Cashflow from Investing Activities

Purchase of Equipment ($12,000)

Cashflow from Investing Activities ($12,000)

Cashflow from Financing Activities

Cash received from Issuing Stock $21,800

Dividend Paid ($7,100)

Cashflow from Financing Activities $14,700

Net Increase in Cash $31,200

Beginning Cash $7,400

Cash at End of Period $38,600

Net Increase in cash = 28,500 - 12,000 + 14,700 = $31,400