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Cash Flow Statement

Kids n' Caboodle, a children's clothing store had the following cash receipts and disbursements for its first year of operations;

Cash sales $155,000
Loan proceeds 21,000
Total Receipts 176,000

Merchandise purchases (all sold this year) 84,000
Wages 33,000
Rent and lease payments 22,000
Other operating outlays 7,900
Purchase equipment 10,500
Total disbursements 157,400

Increase in Cash Balance 18,600

The store has no accounts receivable, at year-end an employee earned 200$ which was not yet paid and at year-end the store had not yet paid their utility bill of $150.

Prepare the cash flow statement for the year.

Solution Summary

The solution explains how to prepare a statement of cash flows