Question

Games Limited began the 2014 with $98,000 in cash. During​ 2014, Games earned net income of $345,000​, and adjustments to reconcile net income to net cash provided by operations totalled $78,000​, a positive amount. Investing activities used cash of $350,000​, and financing activities provided cash of $724,000. Games ended 2014 with total assets of $241,000 and total liabilities of $90,000.

Prepare Games ​Limited's statement of cash flows for the year ended December​ 31, 2014. Identify the data items that do not appear on the statement of cash flows and indicate which financial statement reports these items.

Prepare the statement of cash flows.

Prepare the statement of cash flows. ​(Use parentheses or a minus sign when subtracting numbers or to show a net decrease in cash. Round all numbers to the nearest whole​ number.)

			Thousands
	Cash flows from operating activities:
	Net income

Select the items that do not appear on the statement of cash flows and select which statement they do appear on.

Item		Statement

Answer 1

Statement of cash flow :

	Thousands
Cash flow from operating activities :
Net income	$345
adjustments to reconcile net income to net cash provided by operations	$78
Net cash provided by operating activities	$423
Cash flow from investing activities :
Net cash used by investing activties	( $350 )
Cash flow from financing activities :
Net cash provided by financing activities	$724
Net increase in cash [ $423 - $350 + $724 ]	$797
(+) Beginning cash balance	$98
Ending cash balance	$895

Items that do not appear on the statement of cash flows	Statement in which they appear
Total assets	Balance sheet
Total liabilities	Balance sheet