Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash)$ 85 Net income $90 2020 2019 Current assets Cash $1,250 $1,600 Short‐term invest. 100 200 $1,350 $1,800 Liabilities Borrowings 600 1,000 Stockholders’ equity Common stock 200 300 Retained earnings 550 500 750 800 $1,350 $1,800 Other information: The short‐term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non‐ current. No gain or loss occurred when common stock was repurchased. Required: Calculate cash flow from operating activities .2.Prepare the 2020 statement of changes inequity .3.Calculate cash flow from financing activities.
CP 14–8 Assume the following income statement and
Service revenue (all cash) $175
Operating expenses Salaries (all cash)$ 85
Net income $90
2020 2019
Current assets
Cash $1,250 $1,600
Short‐term invest. 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Common stock 200 300
750 800
$1,350 $1,800
Other information: The short‐term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non‐ current. No gain or loss occurred when common stock was repurchased.
Required:
- Calculate
cash flow from operating activities
.2.Prepare the 2020 statement of changes inequity
.3.Calculate cash flow from financing activities.
4 .(Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow
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4 . (Appendix) Prepare a
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