- Subject Accounting Instructions A Using The Above Information Prepare The Complete Statement Of Cash Flows For The Yea 1 (72.11 KiB) Viewed 39 times
Instructions:
a .Using the above information, prepare the complete statement of cash flows for the year ended December 31, 2021, showing the computation of the net
cash flows from operating (by the indirect method), investing and financing activities.
b.Identify three factors that may cause net income to differ from net cash flows from operating activities. c.Explain the difference between the direct and indirect methods of computing net cash flows from operating activities. Which method results in higher netcash flows? d. Discuss strategies for improvements in cash flow.
b.Identify three factors that may cause net income to differ from net cash flows from operating activities.
c.Explain the difference between the direct and indirect methods of computing net cash flows from operating activities. Which method results in higher net
cash flows?
d. Discuss strategies for improvements in cash flow.
EXERCISE 3 The following data is taken from the Financial Statements of Namaste Corporation for 2021: Jan. 2021 Dec. 2021 Income Statement: Net Income €633,000 Depreciation Expense €125,000 Amortization Expense €252,000 Gain on sale of building €389,000 Accounts Receivable €323,000 €292,000 Inventory €558,000 €521,000 Prepaid Expenses €17,000 €33,000 Accounts Payable €137,000 €187,000 Income taxes payable €91,000 €82,000 Sold a building for €795,000 cash. Paid €100,000 dividend to stockholders. Collected the principal of a loan made to a borrower in the amount of €65,000. Paid €85,000 as repayment of long-term debt. Invested €235,000 in marketable securities. The balance of the cash account on January 1, 2021 was €361,000. Balance Sheet: Additional information: