Intro Acct.

Cash flow from operations

Cash collected from customers

$4,050,000 SALES – 9,000 INC. A/R $ 4,041,000

Cash paid to suppliers

$2,167,000 COGS + 16,000 INC. INV. + 5,000 DEC. A/P (2,188,000)

Cash paid to employees

$780,000 – 7,000 INC. SAL/P (773,000)

Cash paid for other operative expense

$845,250 + 8,500 INC. PREPAID EXP. (853,750)

Cash paid for interest expense

$24,750 – 4,000 INC. I/P (20,750)

Cash paid for income taxes

27,500 – 2,500 INC. TAX/ P (25,000)

$180,500

Cash flow from investments

Proceeds on sales of equipment (110,000)

Proceeds on sale of long-term investment (35,000)

(145,000)

Cash flow from financing

Issue of bonds payable 225,000

Dividends paid $140,500 – 40,500Inc. R/E (100,000)

125,000

Increase in cash 25,500

Cash, beginning of year 90,500

Cash, end of year 116,000

Part B

Roland & Sons’ Music Ltd

Statement of Cash Flow

For the year ended December 31,20x8

Cash flow from operations

Net come $140,500

Adjust for noncash items

+ Amortization expense 60,000

- Gain of sales Long term investment (15,000)

+ Loss on sale of equipment 20,000

Adjust for changes in working capital

Increase A/R...