Submitted by donnaf12 to the category Business and Industry on 07/13/2012 01:44 PM
Donna C. Francis Financial Analysis
Indirect Method
Lllini Law Company
Statement of Cash Flows
December 31, 2001
Cash flow from operating Activities
Net Income $10,000
Adjustment to reconcile net income
Depreciation Expense $8000
Decrease in Accounts receivables $4000
Increase in Inventory (7000)
Decrease in Accounts payable (4000)
Loss of sale of equipment $2000 $ 3,000
Net cash provided by operating activities $13000
Cash flows from Investing Activities
Purchase of property, plant , equipment ($62,000)
Sale of equipment 28,000
Net cash used by investing activities ($34,000)
Cash flows from financing activities
Issuance of common stock $32,000
Issuance of Long-term notes (bonds) $12,000
Cash dividends ($8,000)
Net cash from financing activities 36,000
Net increase in cash 15,000
Cash at the beginning of year 38,000
Cash at end of year $53,000
Direct method
Lllini Law Company
Statement of Cash Flows
December 31, 2001
Cash flows from Operation activities
Cash receipts from customers $154,000
Cash Payments
Cash to suppliers ($121,000)
Operating expenses ( 20,000) ($141,000)
Net cash provided by operating activities $ 13,000
Cash flows from Investing Activities
Cash sale of equipment 28,000
Purchase of machinery (62,000)
Net cash from investing activities $34,000
Cash flow from financing activities
Issuance of common stock 32,000
Issuance of long-term note 12,000
Dividends paid ( 8,000)
Net cash provided by financing activities $36,000
Net cash increase $15,000
Cash at beginning of the year $38,000
Cash at the end of year $53,000
Free Cash Flows
Cash provided by operating expenses...
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