Chapter 2.ppt of macroeconomics by mankiw 9th edition
Statement Of Cash Flows
1. ELLWOOD HOUSE, INC.
Statement of Cash Flows
For Year Ended December 31st, 2007
Operating Activities
Net Income $42,000
Gain on Sale of Investment ($500)
Depreciation Expense $13,550 $13,050
Net Cash Flow from Operating Activities $55,050
Investing Activities
Sale on Investment $15,500
Purchase of Land ($5,500)
Net Cash Flow from Investing Activities $10,000
Financing Activities
Dividends ($19,000)
Issuance of Capital Stock $20,000
Bonds Payable Retired at Par ($10,000)
Net Cash Flow from Financing Activities ($9,000)
Noncash Investing & Financing Activities
Purchase of Equipment for $32,000 in Exchange for $32,000 of Bonds
Net Increase in Cash $56,050
Cash, January 1, 2007 $10,000
Cash, December 31, 2007 $66,050