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Assignment 7

The document provides a statement of cash flows for Power Puff Company for the year ended December 31, 2017 using the direct method, showing cash inflows from operating activities of $29,250 and cash outflows from investing and financing activities of $340,000 and $103,000 respectively, leaving a ending cash balance of $22,000. It includes 4 notes providing additional details on the cash receipts and payments for operating activities as well as withdrawals for financing activities.

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Jerickho J
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70 views

Assignment 7

The document provides a statement of cash flows for Power Puff Company for the year ended December 31, 2017 using the direct method, showing cash inflows from operating activities of $29,250 and cash outflows from investing and financing activities of $340,000 and $103,000 respectively, leaving a ending cash balance of $22,000. It includes 4 notes providing additional details on the cash receipts and payments for operating activities as well as withdrawals for financing activities.

Uploaded by

Jerickho J
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Power Puff Company

Statement of Cash Flows


Dec 31 2017

Direct Method

Cash Flow From Operating Activities:


Cash Receipts from Customers Note 1
Cash Payments:
Merchandise Inventory Note 2
Operating Expenses Note 3
Interest Expenses
Net Operating Cash Inflows

Cash Flow from Investing Activities:


Acquisition of Land
Acquisition of Equipment
Time Deposits

Cash Flow from Financing Activities:


Mortgage Proceeds
Investments Note 4

Cash Balance at Dec 31

Note 1
Sales 875,000
Less: AR 2017 56,000
Net Cash Payment 819,000

Note 2
Cost of Sales 395,000
Add: MI 2017 159,000
Less: AP 2017 47,000
Net Cash Payment 507,000

Note 3
Operating Expenses 313,750
Less: Accumulated Depreciation 2017 32,000
Less: Accrued Operating Expenses 20,000
Net Cash Payment 261,750
Note 4
Power, Capital 298,000
Less: Net Income 145,250
Net Cash Payment 152,750
Power Puff Company
Comparative statements of Cash Flows
Dec 31 2018

Direct Method

Cash Flow From Operating Activities:


819,000 Cash Receipts from Customers
Cash Payments:
507,000 Merchandise Inventory
261,750 Operating Expenses
21,000 789,750 Interest Expenses
29,250 Net Operating Cash Inflows

Cash Flow from Investing Activities:


-100,000
-200,000 Acquisition of Equipment
-40,000 Time Deposits
-340,000 Net cash out flow

Cash Flow from Financing Activities:


180,000 Payment of Mortgage Proceeds
152,750 Withdrawals of Powers
332,750 Net Cashtflow
Add: Beg Cash Balance
22,000 Cash Balance at Dec 31

Note 1
Sales
Add: AR 2017
Less: AR 2018
TOTAL

Note 2
Cost of Sales
Add: Merchandise Inventory 2018
Less: Merchandise Inventory 2017
Add: AP 2017
Less: AP 2018

Note 3
Operating Expenses
Less: Accumulated Depreciation 2018
Less: Accrued Operating Expenses 2018
Total

Note 4
End Capital, 2018
Less: Beg. Capital 2018
Less: Net Income
Net cash withdrawn

Beg Capital
Add: Net income
Less: Withdrawalas
End Capital
B.

Liquidity
Solvency
Free Cash Flow

Note 1 969,000

Note 2 -419,000 2017


Note 3 -336,000 39,000
-15,000 -770,000 Current 25,000
199,000 Total 64,000
Non current 125,000
Total 189,000

-70,000
15,000 Return on Assets
-55,000 2018
2017

-55000 Return on Equity


Note 4 -48,000 -103,000 2018
41,000 2017
22,000
63,000
Gross Profit ratio
2018 56.03%
2017 54.86%

Operating Profit Ratio


978,000 2018 17.69%
56,000 2017 19%
65,000
969,000

430,000
140,000
-159,000
47,000
-39,000
419,000

375,000
-34,000
-5,000
336,000

408,000
-298,000
-158,000
-48,000

298,000
158,000
-48,000
408,000
RATIO

3.038168
0.912844
81,000

2018
47,000
20,000
67,000
180,000
247,000

27.67%
26.65%

44.76%
48.74%
Bel Company
Statement of Bank Reconciliation
April 30, 2018

Balance per book 8630


Add: CM
Loan Face Value 50000
Less Interest Expense -250 49750
Service charge -200
Less: Error in Recording
Recorded as 5500
Should be 5000 -500

Adjusted Balance 57680

Balance per bank 55630


Add: deposit in transit 2250

Less: Outstanding Checks


115 -800
116 -300
122 -900 -2000

Add: error recorded 1800

Adjusted balance 57680


10000 1000
2000 9000
5500 4500
6000 2500
6400 2750
2800 900
2250 7870
Book Balan 63470
Bank Balan 55630
difference 7840

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