Chapter 1, Problem 1.17E

(AACSB) AnalysisYou review a company’s statement of cash flows and find that cash inflows from operations are $150,000,net outflows from investing are $80,000, and net inflows from financing are $60,000. Did the company’scash balance increase or decrease for the year? By what amount? What types of activities would you findunder the category investing activities? Under financing activities? If you had access to the company’sincome statement and balance sheet, why would you be interested in reviewing its statement of cash flows?What additional information can you gather from the statement of cash flows?

Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used. (a)   Issued bonds for $200,000 cash.    Cash Outflow from Operating ActivityCash Outflow from Financing ActivityCash Inflow from Financing ActivityCash Inflow from Operating ActivityCash Inflow From Investing ActivityCash Outflow from Investing Activity           (b)   Purchased equipment for $150,000 cash.    Cash Outflow from Investing ActivityCash Inflow from Operating ActivityCash Outflow from Operating ActivityCash Inflow from Financing ActivityCash Inflow From Investing ActivityCash Outflow from Financing Activity           (c)   Sold land costing $20,000 for $20,000 cash.    Cash Outflow from Investing ActivityCash Outflow from Financing ActivityCash Inflow from Operating ActivityCash Outflow from…

The following data are taken from the records of F.Shield Company for the year 2020. Prepare a statement of cash flows then determine the following: a. Net cash flow from operating activities b. Net cash flow from investing activities c. Net cash flow from financing activities d. Net increase/decrease in cash e. Cash balance on December 31, 2021 Cash balance on January 1, 2020 is P 308, 00 Pravision for bad debts 28, 000 Proceeds from sale of land 950,000 Receivable from customers 500, 000 Cash purchase of service vehicle 800, 00 900, 000 Additional investment of owner Rent income received 32, 000 Principal long-term loan paid 600, 000 Cash receipt from customers 600, 000 Depreciation expense 40, 00 Payment of operating expenses 975, 000 Proceeds of BDO loan 350, 000 Dividends income received 23, 000 Asset withdrawal of owner 125, 000