Chapter 10
The Statement of Cash Flow
536
The cash flow statement the accounting clerk prepared is shown below.
Granite Surfaces
Cash Flow Statement
For the Year Ended December 31, 2016
Cash Flow from Operating Activities
Net Income
$114,140
Add: Depreciation Expense
15,300
Changes in Current Assets and Current Liabilities
Increase in Accounts Receivable
31,400
Decrease in Inventory
(38,700)
Increase in Accounts Payable
41,100
Sale of Equipment
36,000
Purchase of Equipment
(250,000)
Change in Cash due to Operating Activities
($50,760)
Cash Flow from Investing Activities
Receipt of Bank Loan
55,000
Change in Cash due to Investing Activities
55,000
Cash Flow from Financing Activities
Payment of Cash Dividend
(50,000)
Proceeds from Issuance of Common Shares
50,000
Change in Cash due to Financing Activities
0
Net Increase (Decrease) in Cash
4,240
Cash at the Beginning of the Year
114,800
Cash at the End of the Year
$119,040
