Problem:
The following account information is available for Park Company for 2004.
Requirement a.
| PARK COMPANY |
| Computation of Cash Flows from Operating Activities |
| |
|
|
|
| Sales |
|
|
$180,000 |
| Inventory Purchase |
|
|
(90,000) |
| Insurance Paid |
|
|
(20,000) |
| Other Operating Expense |
|
|
(36,400) |
| Salaries Paid |
|
|
(35,000) |
| Net Cash Flow from Operating Activities |
|
$ (1,400) |
Requirement b.
| PARK COMPANY |
| Statement of Cash Flows |
| For the Period Ended December 31, 2004 |
| |
|
|
|
| Cash Flow from Operating Activities: |
|
|
| Cash Receipts from: |
|
|
|
| Sales |
|
$180,000 |
|
| Total Cash Inflows |
|
|
$180,000 |
| Cash Payments for: |
|
|
|
| Inventory Purchased |
|
(90,000) |
|
| Insurance |
|
(20,000) |
|
| Salaries |
|
(36,400) |
|
| Other Operating Expense |
(26,000) |
|
| Total Cash Outflows |
|
|
(172,400) |
| Net Cash Flow from Operating Activities |
|
$ 7,600 |
Required:
Q1. Compute the net cash flow from operating activities.
Q2. Prepare the cash flow from operating activities section of the statement of cash flows.