1.

Prepare the statement of Cash Flow by re-arranging and classifying the transactions in the cash-T-accounts
Operating Activities
Net Income 37,450.00 575.00 Accounts Payable
Accounts Payable 8,110.00 15,345.00 Inventories
Salaries Payable 1,000.00 5,000.00 Prepaid Rent
Utilities Payable 4,000.00
Unearned Revenue 1,395.00
Depreciation 500.00

Net Cash Flow from 31,535.00

Operating Activities

Investing Activities
30,000.00

Net Cash Flow from 30,000.00

Investing Activities

Financing Activities
Additional Investments 35,000.00 15,000.00 Withdrawal
Bank Proceed 23,000.00

Net Cash Flow from 43,000.00

Financing Activities

Net Increase in Cash 44,535.00

Beginning Balance -
Ending Balance 44,535.00

2. Using the Statement of Financial Position and Statement of Comprehenive Income, show the computations of the
direct method operationg section of the Statement of Cash Flow
Mira's Store
Statement of Cash Flow
For the Year Ended December 20A4

Cash Flow from Operating Acitvities

Cash received from customer (Defered Revenue) 1,395.00
Cash received from customer (Collection of Credit Sales) 110,773.00
Cash paid for rent expense (15,000.00)
Cash paid for salary expense (13,000.00)
Cash paid to supplier (52,633.00) 31,535.00

Cash Flow from Investing Acitvities

Cash paid to purchase of fixtures (30,000.00)

Cash Flow from Financing Acitvities

Cash received form investment of owner 30,000.00
Cash received form investment of owner 5,000.00
Cash received form bank proceeds 23,000.00
Cash paid to owner - withdrawal (15,000.00) 43,000.00
44,535.00
3. Prepare the operating section of the Statement of Cash Flows using the indirect method
Mira's Store
Statement of Cash Flow
For the Year Ended December 20A4
Cash Flow from Operating Acitvities
Net Income 37,450.00
Adjustments for:
Depreciation 500.00

(Increase) Decrease in Current Assets (575.00)

Accounts Receivable (15,345.00)
Inventories (5,000.00)
Prepaid Rent

Increase (Decrease) in Current Liabilities

Accounts Payable 8,110.00
Salaries Payable 1,000.00
Utilities Payable 4,000.00
Unearned Revenue 1,395.00

Net Cash from Operating Activities 31,535.00

Cash Flow from Investing Acitvities

Cash paid to purchase of fixtures (30,000.00)

Net Cash from Investing Activities (30,000.00)

Cash Flow from Financing Acitvities

Cash received form investment of owner 30,000.00
Cash received form investment of owner 5,000.00
Cash received form bank proceeds 23,000.00
Cash paid to owner - withdrawal (15,000.00)

Net Cash from Financing Activities 43,000.00

Net Increase in Cash and Cash Equivalents 44,535.00

Cash Balance January 1, 20A4 -
Cash Balance December 31, 20A4 44,535.00
Operating Activities
Net Income 37,450.00 575.00 Accounts Payable
Accounts Payable 8,110.00 15,345.00 Inventories
Salaries Payable 1,000.00 5,000.00 Prepaid Rent
Utilities Payable 4,000.00
Unearned Revenue 1,395.00
Depreciation 500.00

Net Cash Flow from 31,535.00

Operating Activities

Investing Activities
30,000.00

Net Cash Flow from 30,000.00

Investing Activities

Financing Activities
Additional Investments 35,000.00 15,000.00 Withdrawal
Bank Proceed 23,000.00

Net Cash Flow from 43,000.00

Financing Activities

Net Increase in Cash 44,535.00

Beginning Balance -
Ending Balance 44,535.00