Chapter 10
The Statement of Cash Flow
505
AP-17A (
1
4
)
Cleancarpet Vacuums sells vacuum accessories. At the end of 2016, the cash flow statement
below was prepared.
Cleancarpet Vacuums
Cash Flow Statement
For the Year Ended December 31, 2016
Cash Flow fromOperating Activities
Net Income
$83,800
Add: Depreciation Expense
4,760
Deduct: Gain on Sale of Equipment
(7,200)
Change in Current Assets and Current Liabilities
Decrease in Accounts Receivable
2,210
Increase in Inventory
(46,800)
Increase in Accounts Payable
6,000
Change in Cash due to Operating Activities
$42,770
Cash Flow from Investing Activities
Sale of Equipment
20,300
Change in Cash due to Investing Activities
20,300
Cash Flow from Financing Activities
Payment of Bank Loan
(19,100)
Payment of Cash Dividend
(23,700)
Change in Cash due to Financing Activities
(42,800)
Net Increase (Decrease) in Cash
20,270
Cash at the Beginning of the Year
68,300
Cash at the End of the Year
$88,570
Required
a) How much of the company’s cash is from day-to-day operations?
