Question

USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS

Mellon Company
Balance Sheet
For the Years Ending December 31, 2017 and 2018
(All figures in dollars)
	2017		2018
Cash	1,400		1,820
Accounts receivable	7,520		6,870
Inventory	6,450		7,180
Total current assets	15,370		15,870
Gross fixed assets	102,860		108,960
(Accumulated depreciation)	(14,980)		(16,470)
Net fixed assets	87,880		92,490
Land	12,560		14,860
Total assets	115,810		123,220
Notes payable	1,870		1,960
Accounts payable	820		960
Accruals	480		380
Current portion of LT Debt	6,850		8,020
Total current liabilities	10,020		11,320
Long-term debt	71,620		76,520
Common stock	8,000		7,600
Paid in capital	21,480		20,960
Retained earnings	4,690		6,820
Total liabilities and equity	115,810		123,220
Additional Data from 2018 Income Statement:
Sales in 2018			479,650
Net income in 2018			12,760

25. Calculate the Cash flows from operating activities for 2018. 26. Calculate the Cash flows from investing activities for 2018. 27. Calculate the Cash flows from financing activities for 2018.

Answer 1

Solution

Cash flows from operating activities for 2018-= $14,210

Cash flows from investing activities for 2018-=$ (8,400).........Cash used

Cash flows from financing activities for 2018-=$ (5,390).........Cash used

Working

Mellon Company
Statement of Cash Flows
For the Year ended December 31 2018
A. Cash Flows from Operating Activity
Net Income		$      12,760.00
Adjustments to reconcile net income to net cash flows from Operating Activities
Depreciation expense	$             1,490.00
Changes In Current Operating Assets Liabilities
Decrease in Accounts Receivable	$                 650.00
Increase in Inventory	$              (730.00)
Increase in Accounts Payable	$                 140.00
Decrease in accruals	$              (100.00)
		$         1,450.00
Net cash flow from Operating activities		$      14,210.00
B. Cash flows from Investing Activities
Purchase of fixed asset	$           (6,100.00)
Purchase of Land	$           (2,300.00)
Net Cash Used in Investing activities		$      (8,400.00)
C. Cash Flows from Financing activities
Cash received from long term debts	$             6,070.00
Cash received from notes payable	$                   90.00
Purchase of treasury stock	$              (920.00)
Dividends Paid	$        (10,630.00)
Cash flows from Financing activities		$      (5,390.00)
Net Increase (Decrease) in Cash [A+B+C]		$            420.00
Cash at the beginning		$         1,400.00
Cash at the end		$         1,820.00