Ace Sporting Goods

Statement of Cash Flows For the year ended December 31, 2013 Cash Flows from Operating Activities Net Income $ Adjustments to Net Income: Add: Depreciation Expense $ 24,000 Add: Ammortization of Patent 1,600 Less: Gain on Sale of Equipment (400) Less: Gain on Bond Retirement (1,800) Add: Decrease in Accounts Receivable 22,100 Less: Increase in Inventory (80,000) Add: Decrease in Prepaid Insurance 2,700 Add: Decrease in Prepaid Rent 5,000 Less: Increase in Interest Receivable (300) Add: Increase in Accounts Payable 13,450 Less: Decrease in Payroll Taxes Payable (500) Add: Increase in Wages Payable 600 Less: Decrease in Customer Advances (1,000) Less: Decrease in Interest Payable (3,850) Add: Increase in Income Tax Payable 1,500 Add: Increase in Other Accrued Expenses 900 Add: Decrease in Discount on Bonds Payable 1,200 Net Cash Provided by Operating Activity $ Cash Flows from Investing Activities Purchase of Truck Loan to Officer Sale of Furniture Net Cash Used by Investing Activities Cash Flows from Financing Activities Retirement of Bonds Issuance of Common Stock Payment of Dividends Sale of Treasury Stock Payment of Truck Loan Net Cash Used by Financing Activities Net Decrease in Cash Beginning Cash Balance, January 1, 2013 Ending Cash Balance, December 31, 2013 Non-Cash Investing and Financing Purchase of Truck with Note Supplemental Disclosures Cash Used for Interest Cash Used for Taxes

37,100

(14,800) 22,300

(11,000) (2,500) 3,400 $ (10,100)

(47,000) 20,000 (10,000) 6,800 (2,000) $ $ $ $ (32,200) (20,000) 45,000 25,000

9,000

$ $

7,250 14,400

Ace Sporting Goods

Statement of Cash Flows For the year ended December 31, 2013 Cash Flows from Operating Activities Cash Received from Customers $ 704,500 Cash Received from Interest 900 Cash Used for Inventory (496,550) Cash Used for Insurance (14,300) Cash Used for Rent (55,000) Cash Used for Payroll Taxes (6,400) Cash Used for Wages (64,400) Cash Used for Interest Payments (7,250) Cash Used for Income Taxes (14,400) Cash Used for Other Accrued Expenses (24,800) Net Cash Provided by Operating Activity $ 22,300 Cash Flows from Investing Activities Purchase of Truck Loan to Officer Sale of Furniture Net Cash Used by Investing Activities Cash Flows from Financing Activities Retirement of Bonds Issuance of Common Stock Payment of Dividends Payable Resale of Treasury Stock Payment of Truck Current Portion Net Cash Used by Financing Activities Net Decrease in Cash Beginning Cash Balance, January 1, 2013 Ending Cash Balance, December 31, 2013 Non-Cash Investing and Financing Purchase of Truck with Note

$ (11,000) (2,500) 3,400 $ (10,100)

$ (47,000) 20,000 (10,000) 6,800 (2,000) $ $ $ $ (32,200) (20,000) 45,000 25,000

9,000

Ace Sporting Goods

Statement of Cash Flows-Direct Reconciliation of Net Income For the year ended December 31, 2013 Cash Flows from Operating Activities Net Income $ 37,100 Add: Depreciation Expense $ 24,000 Add: Ammortization of Patent 1,600 Less: Gain on Sale of Equipment (400) Less: Gain on Bond Retirement (1,800) Add: Decrease in Accounts Receivable 22,100 Less: Increase in Inventory (80,000) Add: Decrease in Insurance 2,700 Add: Decrease in Rent 5,000 Less: Increase in Interest Receivable (300) Add: Increase in Accounts Payable 13,450 Less: Decrease in Payroll Taxes Payable (500) Add: Increase in Wages Payable 600 Less: Decrease in Customer Advances (1,000) Less: Decrease in Interest Payable (3,850) Add: Increase in Income Tax Payable 1,500 Add: Increase in Other Accrued Expenses 900 Add: Decrease in Discount on Bonds Payable 1,200 (14,800) Net Cash Provided by Operating Activity $ 22,300

Ace Sporting Goods

Statement of Cash Flows-T Accounts For the year ended December 31, 2013 Accounts Receivable 81600 689000 60400
Cash Recv'd from Cust

Allowance for Bad Debt 5700 704500 5700 4800 6600 5700

Inventory 100000 510000

Accounts Payable 430000

Cash Paid for Inv

3800 496550 510000

180000

17250

Ace Sporting Goods

Statement of Cash Flows-T Accounts For the year ended December 31, 2013 Prepaid Insurance 6200
Cash Paid for Insur

17000
Cash Paid for Rent

Prepaid Rent 5000 55000 0

60000

14300 3500

Interest Receivable 300

Cash Recvd from Int

Interest Payable 4000 900

Cash Used for Int Pay

3400 7250 150

1200 600

Ace Sporting Goods

Statement of Cash Flows-T Accounts For the year ended December 31, 2013 Payroll Taxes Payable 1700 5900
Cash Paid for Pay Tax

Wages Payable 5000 65000

Cash Paid for Wages

6400 1200

64400 5600

Income Taxes Payable 5500 15900

Cash Paid for Inc Tax

Other Expenses 1000 25700

Cash Paid for Oth Exp

14400 7000 1900

24800

Ace Sporting Goods

Statement of Cash Flows-Direct Method Schedules For the year ended December 31, 2013 Allowance for Bad Debts Beginning Bal Add Bad Debt Expense Amt Available for Bad Debts Less Ending Bal Amt Used for Bad Debts Accounts Receivable Beginning Bal Add Sales Cash available for collection Less Amt Used for Bad Debts Less Ending Balance Cash Received from Customers Inventory Ending Bal Add COGS Required Inventory Less Beginning Bal Inventory Purchased Accounts Payable Beginning Bal Add Inventory Purchased Cash to be Collected Less Ending Bal Cash Used for Inventory Prepaid Insurance Ending Bal Add Insurance Expense Prepaid Insurance Available Less Beginning Bal Cash Used for Insurance Prepaid Rent Ending Bal Add Rent Expense Rent to be used Less Beginning Bal Cash Used for Rent

$ $ $

4,800 6,600 11,400 5,700 5,700

$ $

81,600 689,000 770,600 5,700 60,400 704,500

$ $ $

180,000 430,000 610,000 100,000 510,000

$ $ $

3,800 510,000 513,800 17,250 496,550

$ $ $

3,500 17,000 20,500 6,200 14,300

$ $ $

60,000 60,000 5,000 55,000

Ace Sporting Goods

Statement of Cash Flows-Direct Method Schedules For the year ended December 31, 2013 Interest Receivable Beginning Bal Add Interest Interest to be received Less Ending Bal Cash Received for Interest Payroll Taxes Beginning Bal Add Payroll Tax Expense Payroll Taxes to be Paid Less Ending Bal Cash Used for Payroll Taxes Wages Payable Beginning Bal Add Wages Expense Wages to be Paid Less Ending Bal Cash Used for Wages Income Taxes Payable Beginning Bal Add Income Tax Expense Income Taxes to be Paid Less Ending Bal Cash Used for Income Taxes Other Accrued Expenses Beginning Bal Add Other Expenses Other Expenses to be Paid Less Ending Bal Cash Used for Other Expenses Interest Payable Beginning Bal Add Interest Expense Interest to be Paid Less Ending Bal Cash Used for Interest Payable

$ $ $

300 1,200 1,500 600 900

$ $ $

1,700 5,900 7,600 1,200 6,400

$ $ $

5,000 65,000 70,000 5,600 64,400

$ $ $

5,500 15,900 21,400 7,000 14,400

$ $ $

1,000 25,700 26,700 1,900 24,800

$ $ $

4,000 3,400 7,400 150 7,250