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Cash Flow Analysis for 2003

Grate Big received $10,000 in dividends from Tiny Co. The document outlines cash flows from operating, investing, and financing activities, resulting in a net change of $10,370. Consequently, the cash balance for 2003 is calculated to be $70,370.

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Syed Faizan Ali
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6 views2 pages

Cash Flow Analysis for 2003

Grate Big received $10,000 in dividends from Tiny Co. The document outlines cash flows from operating, investing, and financing activities, resulting in a net change of $10,370. Consequently, the cash balance for 2003 is calculated to be $70,370.

Uploaded by

Syed Faizan Ali
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Grate Big received $10,000 dividends from Tiny Co.

Solution:

Operating Activity:
1. Cash Received: (Revenue, AR)
800000 – (35000-27000) = 792000

2. Cash Paid to Supplier: (COGS, Inventory, AP)


560000 + (200000 – 230000) + (15000-12000) = (533000)

3. Cash Paid for Interest: (Interest Expense, IP, Bond Premium amortization)
28050 + (11950- 7350) +1000= (33650)

4. Cash paid for Income tax: (IT Expense, ITP)


27980+ (20000-17000) = (30980)

5. Cash paid for Salary: (Salary Expense, SP)


80000 + (7000-5000) = (82000)

6. Other Expenses:
(71000)

7. Investing Activity:
Security: (25000)
Equipment, net: =500000 – 425000 = 75000
Investment= 100000-130000= (30000)

8. Financing Activity:
Stock= 500000 - 450000= 50000
Bonds Payable= 60000-70000= (10000)
Notes Payable= 150000-250000= (100000)
Premium on Bonds Payable= 5000-4000= (1000)
Dividends received= 10000

Now,

Change= (792000 - 533000 - 33650 - 30980 -82000 - 71000) + (-25000+ 75000 -30000) + (50000- 10000 -
100000-1000+10000) = 10370

Now,

Cash 2002 + Change = Cash 2003

60000 + 10370 = 70370

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