Problem14-19A

Raceway Corporation
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows From Operating Activities:
Net Income
Plus: Decreases in current assets and
Increases in current liabilities:
Decrease in inventory
Decrease in prepaid rent
Increase in salaries payable
Less: Increases in Current Assets and
Decreases in current liabilities:
Increase in accounts receivable
Decrease in accounts payable
Add-Noncash charges
Depreciation Expense

$26,400
$10,800 ($45,200-$56,000)
$1,440 ($700-$2,140)
$1,600 ($12,200-$10,600)

(2,940) ($10,200-$7,260)
(2,800) ($37,200-$40,000)
*11,400
$19,500
$45,900

Net cash inflow from operating activities

Cash Flows from Investing Activities:
Sales price
Purchase of equipment
Purchase of land
Net cash outflow from investing activities
Proceeds from Issue of Common stock

**$10,000
***(62,000)
****(66,000)
(118,000)
*****30,000

Net cash inflow from financing activities

Net Decrease in cash
Add-Beginning cash balance
Ending cash balance
*Depreciation Expense = (73,400) +56,000-(118,000) = $11,400
**Sales price given in other information (In Problem)
***Purchase of equipment given in other information (In Problem)
**** Purchase of land given in other information (In Problem)
***** Proceeds from Issue of Common stock given in other information (In Problem)

30,000
$(42,100)
$48,400
$6,300