Summary: Statement Of Cash Flows

Week 5-Check Point-Preparing a Statement of Cash Flows
Anderson, C.
Axia College of University of Phoenix
Due: August 7, 2011
ACC/230
Nathan McDaniel

In this paper I will show the Balance Sheet and Income Statement for Little Bit, Inc., and then I will draw up a Statement of Cash Flows for Little Bit, Inc., then I will give you an analysis of the Statement of Cash Flows that I have drawn up. Balance Sheet for 2009
December 31,
2009 2008
Cash $ 40,000 $ 24,000
Accounts receivable (net) 48,000 41,500
Inventory 43,000 34,500
Prepaid expenses 19,000 15,000
Total Current Assets $ 150,000 $ 115,000
Plant and equipment $ 67,000 $ 61,000
Less accumulated depreciation (41,000) (23,000)
Plant and equipment (net) $ 26,000 $ 38,000
Net cash used by investing activities ($7,000) Cash flows from financing activities
Additions to long-term debt 17,000
Sales of common stock 15,000 Net cash provided by financing activities $32,000 The Increase in Cash: $16,000

My analysis: Inflows $ %
Long-term debt 17,000 53
Sales of common stock 15,000 47
Totals 32,000 100

Outflows
Operating activities 9,000 56
Purchase of property and equipment 6,000 38
Purchase of long-term investments 1,000 6
Totals 16,000