Question

Consider these abbreviated financial statements for Tomkat LLC:

Income Statement	2013
Sales (all credit)	2,000,000
Cost of Goods Sold	1,360,000
Cash Expenses	300,000
Depreciation	120,000
Taxes	120,000
Net Income	100,000
Balance Sheet	2012	2013
Cash	10,000	12,000
Accounts Receivable	300,000	320,000
Inventory	410,000	430,000
Total Current Assets	720,000	762,000
Net Fixed Assets	1,200,000	1,320,000
Total Assets	1,920,000	2,082,000
Accounts Payable	44,000	48,000
Long Term Debt	666,000	724,000
Owners Equity	1,210,000	1,310,000
Total Debt and Equity	1,920,000	2,082,000

(a) Prepare a listing of Tomkat’s sources and uses of funds during 2013 (it is not necessary to identify operating vs investment vs financing). The list should begin with Net Income, and total sources less total uses should equal the $2000 increase in the cash balance.

Answer 1

let me know if you need any clarification.....

Net income			100,000
Sources of fund
Debt	=724000-666000		58000
Depreciation non cash item			120000
Account payable	=48000-44000		4000
Total			182000
Use of fund
Fixed asset	=1320000+120000-1200000		-240000
Inventory	=430000-410000		-20000
Account receivable	=300000-320000		-20000
Total			-280000
net increaes in Cash			2,000