The Following Data Is Supplied from the Comparative Balance Sheets

question 124

Essay

The following data is supplied from the comparative balance sheets and income statement information from Webber,Inc.Webber uses the indirect method to prepare its statement of cash flows.
$\begin{array}{c}\text { Webber, Inc. }\\\text { Comparative Balance Sheets}\\\begin{array}{lrr}&12 / 31 / \text { Year } 2&12 / 31 / \text { Year } 1\\\text { Cash } & \$ 22,000 & \$ 16,000 \\\text { Accounts receivable } & 12,000 & 8,000 \\\text { Prepaid insurance } & 8,000 & 10,000 \\\text { Inventory } & 14,000 & 16,000 \\\text { Property, plant, and equipment } & 22,000 & 16,000 \\\text { Accumulated depreciation } & \underline{(6,000) }& \underline{(4,000)}\\ \text { Total } & \underline{ \$ 72,000} & \underline{62,000} \\ \text { Accounts payable } & \$ 20,000 & \$ 16,000 \\ \text { Operating expenses payable } & 14,000 & 16,000 \\ \text { Long term notes payable } & 10,000 & 12,000 \\ \text { Common stock } & 18,000 & 12,000 \\ \text { tained earnings } &\underline{ 10,000}& \underline{6,000} \\& \underline{\$ 72,000} &\underline{ \$ 62,000 }\\\text { Income Statement } & \text { Year } 2 \\\text { Revenue } & \$ 70,000 \\\text { Cost of goods sold } & \underline{40,000} \\ \text { Gross margin } & \underline{30,000 }\\\text { Depreciation expense } & 2,000 \\\text { Other operating expense } & \underline{18,000} \\\text { Net income } & \underline{\$ 10,000}\end{array}\end{array}$
Required:
a)Calculate the cash flow from operating activities (using the indirect method).
b)Calculate the cash flow from investing activities.
c)Calculate the cash flow from financing activities.

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Definitions:

Task Performance

The execution and accomplishment of specific work activities or responsibilities assigned to an individual or team.

Instrumentality

The quality of being useful or instrumental in achieving a goal or purpose.

Valence

In motivational theory, the value an individual places on the rewards of an outcome, which affects their motivation to work.

Performance

The act of carrying out an activity or fulfilling a task with a certain level of efficiency and effectiveness, often measured against pre-established standards.