Principles of Accounting - Cash Flow Question

Principles of
accounting

ACCOUNTING 1
Question 1
KOSINSKI MANUFACTURING LTD Statement of cash flows
for the year ended 31 December 2016
Cash Flow from Operating
Activities
Cash received From customers
$
6,418,000
Cash Payments to Suppliers
$
3,947,000
$
4,843,000
To operating
expenses
$
896,000
for income tax
$
353,000
Net cash from operating activities
$
1,222,000
Cash flow from Investing activities
Sale of machinery
$
70,000
Purchase of machinery
$
750,000
Net cash from investing activities
$
(680,000)
Cash flow from Financing
Activities
Proceeds from borrowings
$
200,000
Payment of cash Dividends $

ACCOUNTING 2
200,000
Net cash from financing Activities $ -
Net Increase in cash
$
542,000
Cash at beginning of period
$
130,000
Cash at end of period
$
672,000
Reconciliation of profit to cash provided by operating
activities
Profit
$
430,000
Adjustment of
Depreciation expense
$
880,000
Loss on sale of machinery
$
27,000
Increase in A/r
$
(165,000)
Decrease in inventory
$
33,000
Increase in A/P
$
20,000
Decrease in provision for warranty
$
(3,000)
$
792,000
Net cash provided by operating activities $