Forest Company

Statement of Cash Flows

Year Ended December 31, 2017

Cash flow from operating activities:

Net income 1,705,000
Amortization of discount 10,000
Depreciation 100,000
Loss on retirement 28,000
Unrealized gain -100,000
Increase in accounts receivable -80,000
Increase in inventory -60,000
Decrease in accounts payable -310,000
Increase in accrued expenses 100,000

Cash flow from financing activities:

Issue of ordinary share capital 120,000
Payment of cash dividend - 1,000,000
Bond retirement - 210,000

Increase in cash and cash equivalents

Add: Cash and cash equivalents - January 1
Cah and cash equivalents - December 31

Fearsome Company
Satement of Cash Flows
Year Ended December 31, 2017

Cash flow drom operating activities:

Net income
Depreciation
Gain on sale of equipment
Decrease in net accounts receivable
Increase in inventory
Investment income
Increase in accounts payable
Cash flow from investing activities:
Sale of Equipment
Purchase of equipment
 1,393,000

- 1,090,000

303,000
300,000
603,000