Statement of Cash Flows SLP 4: Revenues and Expenditures

Statement of Cash Flows SLP 4
Nathaniel Salaam
Trident University
ACC 401: Financial Accounting
December 05, 2016
Statement of cash flows
Cash flows from operating activitiesNet income$127,150 Adjustments forDepreciation  $24,350Increase in inventories($42,500)Cash generated from operations$109,000 Cash flows from investing activitiesLand increase($400,000)Net cash used in investing activities($400,000)Cash flows from financing activitiesLong-Term Debts increase $360,000 Common stock $30,000 Paid-in Capital.$150,000 Dividends paid($15,000)Net cash used in financing activities$525,000 Net increase in cash and cash equivalents$234,000 Cash and cash equivalents at beginning of period30,000 Cash and cash equivalents at end of period$264,000 
Statement of cash flow
The Statement of cash flows indicates changes in the use of cash to the sources of cash (Smith, 2010). On the other hand, the income statement shows the revenues and expenditures. In the cash flows from operating expenses the deprecation expenses of $24,350 were added to the net income as a non-cash expense. The non-cash items are considered before adjusting the cash-based transactions. Considering the current asses and current liabilities, there was $42,500 increase in the inventory levels. The net income as reported by the income statement is prepared under the accrual b...