Problem:
Please determine the change in cash to the Investing activities based upon the following cash flow statement. Please explain your answer. I only noticed the fixed assets, but not sure about the securities.
| Clackamas Inc. |
|
| Comparative Balance Sheets |
|
| December 31, 2012 |
|
|
|
|
|
|
| Assets |
|
31-12-12 |
31-12-11 |
|
| Cash |
|
$ 87,000 |
$ 79,000 |
$ 8,000 |
| Inventory |
|
$ 30,000 |
$ 44,000 |
$(14,000) |
| Securities |
|
$ 21,000 |
$ 17,000 |
$ 4,000 |
| Fixed Assets |
|
$ 48,000 |
$ 50,000 |
$ (2,000) |
| Less: Accumulated Depreciation |
|
$ (15,000) |
$ (13,000) |
$ (2,000) |
|
|
|
|
|
| Total Assets |
|
$ 171,000 |
$177,000 |
|
|
|
|
|
|
| Liabilities & |
|
|
|
|
| Stockholders' Equity |
|
|
|
|
| Accounts Payable |
|
$ 53,000 |
$ 40,000 |
$ 13,000 |
| Notes Payable |
|
$ 28,000 |
$ 56,000 |
$(28,000) |
| Common Stock |
|
$ 45,000 |
$ 40,000 |
$ 5,000 |
| Retained Earnings |
|
$ 45,000 |
$ 41,000 |
$ 4,000 |
|
|
|
|
|
| Total Liabilities & |
|
|
|
|
| Stockholders' Equity |
|
$ 171,000 |
$ 177,000 |
|
| Statement of overall change in cash position - Indirect Method |
|
| Cash Flows from Operating Activities: |
|
|
| Net Income |
$0 |
|
| Adjustments to reconcile net income to net cash provided by Operating Activities:: |
|
|
| Decrease in Accounts Receivable |
$0 |
|
| Increase in supplies |
$0 |
|
| Increase in inventory |
$0 |
|
| Decrease in prepaid rent |
$0 |
|
| Accumulated depreciation |
$0 |
|
| Increase in Account payable |
$0 |
|
| Decrease in accrued expenses |
$0 |
|
| Net Cash Provided by Operating Activities |
|
$0 |
| Cash Flows from Investing Activities: |
|
|
| Purhase of Fixed asset |
($2,000) |
|
| Net Cash Provided by Investing Activities |
|
($2,000) |
| Cash Flows from Financing Activities: |
|
|
| Issue of Note payable |
$0 |
|
| Repayment of Bonds payable |
$0 |
|
| Payment of Dividends |
$0 |
|
| Net Cash Provided by Financing Activities |
|
$0 |
| Net Increase in Cash |
|
($2,000) |