Kids n caboodle clothing Enterprises had following receipts and payments for it's first year of operations

Receipts
Cash sales 155,000
Loan proceeds 21,000
total receipts 176,000
Payments/disbursements
Merchndise purchase (all sold this year) 84,000
wages 33,000
rent and lease payments 22,000
other operating expenses 7,900
Purchse equipments 10,500
total payments/disbursement 157,400
Increase in cash balance 18,600

there was no a/c receivables, emplyee had earned wages of 200 yet to be paid. Store had not paid utilities bill of 150.
Prepare a cash flow statement for the year

satement of Cash Flow of Kids n Caboodle

Cash Flow from operating activities 8,100
cash receipts from sale of goods 155,000
payment to suppliess 84,000
payment of wages 33,000
payment of rent and lease 22,000
payment of other operaing exp 7,900 146,900
Cashflow from investing activities 10,500
purhcase of equipments 10,500
Cash flow from financing activities 18,600
loan proceeds 21,000 18,600

Since company follow all cash basis transactions a/c payables and receiables are not considered
tilities bill of 150.
Balance Sheet as on 31st Dec
year 1 Year 2 net change during the year
Assets increase decrease
Cash 10,000 15,000 5,000
receivables 20,000 25,000 5,000
inventory 20,000 35,000 15,000
Plant & machinery cost 85,000 85,000 0
less dep -15,000 -10,000 5000
Total Assets 120,000 150,000

Liabiliites & capital

sundry Creditors 8000 10,000 2,000
Outstanding expenses 7000 10,000 3,000
debenture payable 10,000 5000 5000
long term loans 5000 25000 20000
capital 50,000 50,000 0
Retained earnings 40,000 50,000 10000
120000 150,000

Net profit for the period after charging rs.5000 on account of dep was rs. 20,000. A piece of equipment costing Rs.25000 on
in the amount of Rs.10,000.00 was sold for Rs.10,000. dividends paid during the year amounted to Rs.10,000.00
show the sources and uses of funds nd change in working capital: cost of Ma 25,000
dep 10,000
soures of funds book value 15,000
operations 30,000 sold 10,000
Net income 20,000 loss 5,000
add loss on sale of machi 5000
add dep 5000
sale of equpment 10,000
long term loans 20000
Totl source of funds 60,000

Uses of funds
equipment 25000
repayment of debenture 5000
payment of dividends 10,000 40,000
working capital change 20,000
Total uses of funds 60,000

Working Capital change year 1 year 2

current assets
Cash 10,000 15,000
receivables 20,000 25,000
inventory 20,000 35,000
Total 50,000 75,000
Current liabilities
sundry Creditors 8000 10,000
Outstanding expenses 7000 10,000

tOTaLl 15000 20,000

Change in working capita 35,000 55,000 20,000
Current assets - current liabilities
equipment costing Rs.25000 on which dep accumlated
ed to Rs.10,000.00

80 75
Balance sheet 2001 2000 Increase/ decrease source use
cash 12000 15000 -3000
other current asset 25000 22000 3000 -3000
equipemnt 108,000 50,000 58000 -58000
accumlated dep - equipment -20,000 -16,000 -4000 -4000
land 30,000 30,000 0
toal assets 155000 101000 54000

current LiabILITI 26,000 22,000 4,000 4000

long term debt 50,000 25,000 25,000 25000
common stock 50,000 40,000 10,000 10000
retained earnining 29,000 14,000 15,000
155,000 101,000 54,000
Additional information;
a.Dividends of 10,000 were paid during the year
b.No equipment was sold during the year

What was the net cash provided by (used in) financing activities during 2001?
What was the net cash provided by(used in) investing activities during 2001/

NET Income = Retained Earning Ending Balance - Retained Earning Beginning Balance+Dividend paid
Net Income =29000-14000+10000 25000

INDIRECT METHOD
Net income 25000
A.Operating Acitivities
Decreases 8000
Depreciation 4000
Inrease in Current Liability 4000
Decreases -3000
increase in current assets -3000
Net Cash Flow from Operating activities 5000 30000

B. Investing Activities
Incerase
Decreases -58000
purchase of equipment -58000
Net Cash provided from Investing acivities -58000
C.Financing Activities
Increases 35,000
Increase in common stock 10,000
Long Term Debt 25,000
Decreases -10,000
Payment of Dividend -10,000
Net Cash provided from Finncing acivities 25,000
Net 'cash flow during the year A+B+C -3,000