The Green Restaurant Statement of Cashflows Order Instructions: need help with Preparing an SCF for The Green Restaurant.
Here is the number for the statement of cash flow.
Net Income
$116,300
Depreciation
$15,000
The decrease in Accounts Receivables
$10,000
Increase in Inventory
$3,000
The decrease in Accounts Payable
$16,500
Purchased Equipment
$35,000
Payment of Long-Term Debt
$25,000
Purchase of Investments
$60,000
Statement of Cash Flow
Preparing an SCF is an important step in budget development because it helps managers to forecast the future budget on the basis of operating, investing, and financing activities. Use the information given in the table below to prepare an SCF for The Green Restaurant for the current year. When preparing the SCF to be sure to determine whether the amounts are a source or use of cash; and the appropriate section of the SCF the amount belongs to, either: operating, investing, or financing.
The Green Restaurant Statement of Cashflows Sample Answer
The Green Restaurant Statement of cash flows
| $ | $ | |
| Cash flow from operating activities | ||
| Net income | 116,300 | |
| Add back depreciation | 15,000 | |
| Less Decrease in Accounts Receivables | 10,000 | |
| Less Increase in Inventory | 3,000 | |
| Less Decrease in Accounts Payable | 16,500 | |
| Net cash from operating activities | 101,800 | |
| Cash flow from investing activities | ||
| Purchased Equipment | 35,000 | |
| Purchase of Investments | 60,000 | |
| Net cash used in operating activities | 95,000 | |
| Cash flow from financing activities | ||
| Payment of Long-Term Debt | 25,000 | |
| Net cash used in financing activities | 25,000 | |
| Net increase/decrease in cash | -18,200 |
