Cash Flow Exercise Paper
6A:001 Introduction to Financial Accounting
Cash Flow Exercise
Required:
Following are the balance sheet and statement of cash flow as reported by Pro-Solutions Inc. for its fiscal year ending March 31, 2012. Using the information provided in the statement of cash flow, reconcile the March 31, 2011 balance sheet to the March 31, 2012 balance sheet using the T-accounts on the attached worksheet.
PRO-SOLUTIONS INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| March 31, | March 31, | | 2012 | 2011 | ASSETS | | | Current assets: | | | Cash and cash equivalents | $ 2,832 | $ 3,755 | Accounts receivable, net of allowance for doubtful | | | accounts $1,132 in 2012 and $700 in 2011 | 12,623 | 15,112 | …show more content…
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| | 2012 | Cash flows from operating activities: | | Net income (loss) | ($12,461) | Adjustments to reconcile net income/(loss) to net cash | | provided by (used in) operating activities | | Depreciation | 4,951 | Loss on disposal of fixed assets | 531 | Provision for doubtful accounts | 500 | Provision for excess and obsolete inventories | 2,200 | Deferred income taxes | 2,662 | Changes in operating assets and liabilities: | | Accounts receivable | 1,989 | Inventories | 1,360 | Prepaid expenses and other assets | 287 | Accounts payable | 941 | Accrued liabilities | (1441) | Net cash provided by (used in) operating activities | 1,519 | | | Cash flows from investing activities: | | Purchase of property and equipment | (2,442) …show more content…
Proceeds from disposal of fixed assets | 200 | Loan to related party | (200) | Net cash used in investing activities | (2,442) | | | Cash flows from financing activities: | | Proceeds from short-term borrowings | 4,000 | Repayment of short-term borrowings and bank debt | (4,000) | Net cash provided by financing activities | -- | Net decrease in cash and cash equivalents | (923) | Cash and cash equivalents, beginning of period | 3,755 | Cash and cash equivalents, end of period | $2,832 | | | Supplemental disclosure of cash flow information | | Income taxes paid | -- | Interest paid | $45 | | |
Cash | | Accounts Receivable | Allow Doubt Accts
Cash Flow Exercise
Required:
Following are the balance sheet and statement of cash flow as reported by Pro-Solutions Inc. for its fiscal year ending March 31, 2012. Using the information provided in the statement of cash flow, reconcile the March 31, 2011 balance sheet to the March 31, 2012 balance sheet using the T-accounts on the attached worksheet.
PRO-SOLUTIONS INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| March 31, | March 31, | | 2012 | 2011 | ASSETS | | | Current assets: | | | Cash and cash equivalents | $ 2,832 | $ 3,755 | Accounts receivable, net of allowance for doubtful | | | accounts $1,132 in 2012 and $700 in 2011 | 12,623 | 15,112 | …show more content…
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| | 2012 | Cash flows from operating activities: | | Net income (loss) | ($12,461) | Adjustments to reconcile net income/(loss) to net cash | | provided by (used in) operating activities | | Depreciation | 4,951 | Loss on disposal of fixed assets | 531 | Provision for doubtful accounts | 500 | Provision for excess and obsolete inventories | 2,200 | Deferred income taxes | 2,662 | Changes in operating assets and liabilities: | | Accounts receivable | 1,989 | Inventories | 1,360 | Prepaid expenses and other assets | 287 | Accounts payable | 941 | Accrued liabilities | (1441) | Net cash provided by (used in) operating activities | 1,519 | | | Cash flows from investing activities: | | Purchase of property and equipment | (2,442) …show more content…
Proceeds from disposal of fixed assets | 200 | Loan to related party | (200) | Net cash used in investing activities | (2,442) | | | Cash flows from financing activities: | | Proceeds from short-term borrowings | 4,000 | Repayment of short-term borrowings and bank debt | (4,000) | Net cash provided by financing activities | -- | Net decrease in cash and cash equivalents | (923) | Cash and cash equivalents, beginning of period | 3,755 | Cash and cash equivalents, end of period | $2,832 | | | Supplemental disclosure of cash flow information | | Income taxes paid | -- | Interest paid | $45 | | |
Cash | | Accounts Receivable | Allow Doubt Accts