Question

Balance Sheets for the Years Ending Dec. 31, 2011 and 2012
		2011		2012
Cash		300		400
Accounts receivable		1,000		1,400
Inventories		3,200		3,000
Current assets		4,500		4,800
Net fixed assets		3,800		4,300
Total assets		8,300		9,100
Notes payable		400		300
Accounts payable		700		500
Accruals		50		80
Current portion of long-term debt		70		80
Current liabilities		1,220		960
Long-term debt		4,300		4,900
Common stock ($.20 par)		1,200		1,300
Additional paid-in capital		680		740
Retained earnings		900		1,200
Total liabilities and equity		8,300		9,100

Net income (as reported on the 2012 Income statement) = 548

Depreciation (as reported on the 2012 Income statement) = 197

Net Cash Flow from Financing Activities = __________

INPUT YOUR ANSWER WITHOUT A DOLLAR SIGN AND WITHOUT ANY COMMAS. IF YOU MEAN FOR YOUR ANSWER TO INDICATE A CASH INFLOW, ENTER THE ANSWER ONLY (for example, enter a cash inflow of $1,000 as 1000). IF YOU MEAN FOR YOUR ANSWER TO INDICATE A CASH OUTFLOW, PUT A NEGATIVE SIGN BEFORE YOUR ANSWER - DO NOT ENTER A SPACE BETWEEN THE NEGATIVE SIGN AND THE NUMBER (for example, enter a cash outflow of $1,200 as -1200)

Momber's Flooring Company
		2011		2012
Cash		500		800
Accounts receivable		1,400		1,200
Inventory		3,900		4,400
Net fixed assets		8,200		8,200
Land		1,000		2,000
Total Assets		15,000		16,600
Notes payable		1,000		600
Accounts payable		3,000		2,000
Accruals		500		900
Long-term debt		3,600		5,400
Common Stock		2,500		2,200
Retained earnings		4,400		5,500
Total Liabilities and Equity		15,000		16,600

Given the Balance Sheets for Momber's Flooring Company above for the years ending December 31, 2011 and 2012, find Net Cash Flows from Operating Activities for 2012 assuming the following income statement data:

Net income (2012) = $4,045 and Depreciation (2012) = $883

Round your answer as a whole number and record without a dollar sign and without commas. For example, record $3,204.854 as 3205. To show a negative cash flow (i.e., a net cash outflow), place a negative sign before your answer with no space between the negative sign and the number. Thus, record negative 5,432 as -5432.

Answer 1

1:

Cash from financing activities

Increase in long term debt = 4900-4300 = 600 (Cash inflow)

Increase in common stock = 1300-1200 = 100 (Inflow)

Increase in additional paid in capital = 740-680= 60 (Inflow)

Payment of dividend = - (Net Income - (closing retained earnings- opening retained earnings ))

= - (4045- (5500-4400)) = -2945

Total cash from financing activities = $ -2185

2:

Operating Cash flows		3628
Net Income	4045
Adjustments
Depreciation	883
Decrease in receivables	200
Increase in inventories	-500
Decrease in notes payables	-400
Decrease in accounts payables	-1000
Increase in accruals	400