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Cash Flows

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Direct Method: ABC Company Direct Statements of Cash Flow for December 31, 2013 © www.excel-skills.com 2013 Cash flows from operating activities Cash Sales 4,523.00 Collections on Receivables 6,739.00 Purchases (1,332.00) Cash paid to employees (wages) (987.00) Cash paid to suppliers (1,028.00) Cash generated from operations 7,915.00 Interest payments (12.00) Tax Payments (275.00) Net cash from operating activities 7,628.00 Cash flows from investing activities Capital Expenditures (1,389.00) Payments for Businesses Acquired (206.00) Proceeds from Sales of Property and Equipment 88.00 Net cash used in investing activities (1,507.00) Cash flows from financing activities Proceeds from Long-Term Borrowings 5,222.00 Repayments of Long-Term Debt (1,289.00) Repurchases of Common Stock (8,546.00) Proceeds from Sales of Common Stock 241.00 Cash Dividends Paid to Stockholders (2,243.00) Other Financing Activities (37.00) Net cash used in financing activities (6,652.00) Net increase (decrease) in cash (531.00)

Indirect Method: ABC Company Indirect Statements of Cash Flow for December 31, 2013 © www.excel-skills.com 2013 Cash flows from operating activities Profit before taxation 8,467.00 Adjustments for: Depreciation 1,627.00 Investment income (12.00) Interest expense 711.00 Profit / (Loss) on the sale of property, plant & equipment - Working capital changes: Increase / Decrease in trade and other receivables (15.00) Increase / (Decrease) in inventories (455.00) Increase / (Decrease) in trade payables 605.00 Increase / (Decrease) in wages payables 228.00 Increase / (Decrease) in

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