Answer to Question #245168 in Accounting for samantha

Question

II. Directions: Based on the following amounts of Lychee Company,

prepare a cash flow statement for the year ended 2020

Cash balance, January 1, 2020 ₱ 300,000

Decrease in accounts receivable ₱ 85,000

Interest expense ₱ 55,500

Proceeds from sale of equipment ₱ 130,000

Payment of equity financing ₱ 65,000

Decrease in accounts payable ₱ 54,000

Increase in inventory ₱ 118,000

Proceeds from issuance of long-term bonds payable ₱ 250,000

Increase in salaries payable ₱ 125,000

Income tax expense ₱ 49,000

Payment for purchase of equipment ₱ 280,000

Answer 1

Solution:

The cash flow statement for Lychee Company as of December 31^st is as follows: