Question #2
Statement of cash flows for Bernard Corp. is presented below:
BERNARD CORP.
Statement of Cash Flows (indirect method)
Year ended December 31, 2024
Cash provided by operating activities
Net income
Add back non-cash expenses:
Increase in accounts receivable
Increase in accounts payable
Depreciation expense.
Gain on disposal of equipment.
Amortization of patents
Cash provided by operating activities
Cash provided by (used in) investing activities
Sale of equipment.
Purchase of land
Purchase of buildings and equipment.
Cash used by investing activities
Cash provided by financing activities
Payment of cash dividends.
Issuance of common shares.
Cash provided by financing activities.
Net increase in cash.
Cash, January 1, 2024
Cash, December 31, 2024
Instructions
1. Summarize Bernard's cash flows of 2024: what was the main source of cash and was the
main use of the cash during 2024?
$ 150,000
$ (24,000)
32,000
60,000
(14,000)
8,000
62,000
212,000
48,000
(100,000)
(192,000)
(244,000)
(60,000)
160,000
100,000
68,000
160,000
$ 228,000
