Avalos Corporation is preparing its annual financial statements at December 31 of the current year. Listed here are the items on its statement of cash flows presented in alphabetical order. Parentheses indicate that a listed amount should be subtracted on the cash flow statement. The beginning balance in cash was $30,000 and the ending balance was $70,700.

Decrease in accounts payable (4,989)

Decrease in inventory 15,552

Increase in accounts receivable (389)

Land purchased (36,389)

Net income 36,452

New delivery truck purchased for cash (9,989)

Stock issued for cash 40,452

Prepare the current year statement of cash flows for Avalos Corporation. (Cash outflows should be indicated with negative amounts.)

Question

Violet Lucas

Business

11 June, 01:17

Avalos Corporation is preparing its annual financial statements at December 31 of the current year. Listed here are the items on its statement of cash flows presented in alphabetical order. Parentheses indicate that a listed amount should be subtracted on the cash flow statement. The beginning balance in cash was $30,000 and the ending balance was $70,700.

Decrease in accounts payable (4,989)

Decrease in inventory 15,552

Increase in accounts receivable (389)

Land purchased (36,389)

Net income 36,452

New delivery truck purchased for cash (9,989)

Stock issued for cash 40,452

Prepare the current year statement of cash flows for Avalos Corporation. (Cash outflows should be indicated with negative amounts.)

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Burnett · Answer 1

Solution and Explanation:

From Operating activities

Net income 36452

Add: Decrease in inventory 15552

Less: Increase in accounts receivable 389

Less: Decrease in accounts payable 4989

From Operating activities 46626

From Investing actvities

Land purchased - 36389

Delivery truck purchased - 9989

From Investing actvities - 46378

From FInancing activites

Add: Stock issued for cash 40452

From FInancing activites 40452

Net change in cash 40700

Opening cash balance 30000

Clsoing cash balance 70700