Question: Muench, Inc.’s accountant has partially completed the spreadsheet for the statement of cash flows. Fill in the remaining missing information.

Particulars

Balance (31/12/2018) (a)

Balance (31/12/2017) (b)

Net Income

$6,300

$4,000

$2,300

Increase in accounts receivables

$5,000

$3,200

$1,800

Decrease in accounts payable

$3,500

$5,000

$1,500

MUENCH Inc.

Statement of cash flows

Cash flows from operating activities

Net Income

$2,300

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation expense-Plant assets

$100

Increase in account receivables

($1,800)

Decrease in account payables

$1,500

($200)

Net cash provided by operating activities

$2,100

Cash flows from investing activities

Cash payment for acquisition of plant assets

($1,000)

Net cash used for investing activities

($1,000)

Cash flows from financing activities

Cash receipt from issuance of common stock

$5,850

Cash payment of dividends

($5,700)

Net cash provided by financing activities

$150

Net Increase/(Decrease) in cash

$1,250