Cash Flow Statement Ex 17 - 8 (Direct)

Exercise  17 – 8  (DIRECT)
VicWest Inc
Cash Flow Statement
For Year Ended June 30, 2014
Cash flows from operating activities:
Cash received from Customers			$   764,400
Cash paid for Inventory			(450,000)
Cash Paid for other Operating Exp			(91,440)
Cash Paid for Income Tax			(56,208)
Net cash inflow from operating activities					$   166,752
Cash flows from investing activities:
Cash received from sale of Old Equipment			12,000
Cash paid for new Equipment			(70,320)
Net Cash outflow from Investment activities					(58,320)
Cash flows from financing activities:
Cash received from issuance of Com. Share			60,000
Cash paid to retire L.T. Note Payable			(36,000)
Cash paid for Dividends			(83,472)
Net cash outflow from financing activities					(59,472)
Net increase in cash					48,960
Cash balance at beginning of July 1, 2013					42,000
Cash balance at end of June 30, 2014					$      90,960
Calculations:
Cash Received from Customers
Cash Received from Customers +  AR beginning - AR ending
=786000 +74400 - 96000 =764400
Cash Paid for Inventory
Purchases + Decrease in Accounts Payable
= 442,800 + 7200 = 450,000
Purchase
COGS - Increase in Inventory
=  478,800 - 36,000 =  442,800
Income Tax Paid
Income Tax Expense + Decrease in Income Tax
= 54,768 + 1440 = 56,208
Cash paid for Operating Expenses
Operating Expenses + Increase prepaid expenses + decrease in accrual
= 80,400 + 240 + 10800  =  91,440