EXERCISE No.

4 CASH FLOW STATEMENT

With the following financial statements:
1. Calculate the variations from one period to another
2. Prepare the cash flow statement using the direct method.
3. Prepare the cash flow statement using the indirect method.

AGUSTINO SA
STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31

ASSET 2014 2015 Variation

Cash 4,675.00 4,924.60 249.60
Accounts Receivable 12,582.00 15,430.00 2,848.00
Inventories 11,480.00 13,870.00 2,390.00
Anticipated spendings 654.00 690.00 36.00
TOTAL CURRENT ASSETS 29,391.00 34,914.60
NON-CURRENT ASSET
Property Plant and Equipment 29,870.00 32,100.00 2,230.00
Accumulated depreciation (4,702.00) (11,027.00) (6,325.00)
TOTAL NON-CURRENT ASSETS 25,168.00 21,073.00
TOTAL ASSETS 54,559.00 55,987.60

PASSIVE
Bank obligations 4,300.00 4,200.00 (100.00)
Suppliers 8,632.00 9,183.00 551.00
Accumulated Tax Payable 598.00 1,764.00 1,166.00
TOTAL CURRENT LIABILITIES 13,530.00 15,147.00
Long term obligations 12,650.00 11,342.00 (1,308.00)
TOTAL CURRENT LIABILITIES 12,650.00 11,342.00
TOTAL LIABILITIES 26,180.00 26,489.00
HERITAGE
Social capital 20,000.00 21,120.00 1,120.00
Bookings 2,865.00 2,865.00
Usefulness of exercise 5,514.00 5,513.60
TOTAL ASSETS 28,379.00 29,498.60
TOTAL LIABILITIES AND EQUITY 54,559.00 55,987.60
-

AGUSTINO SA
STATEMENT OF INCOME
AT DECEMBER 31

2014 2015
Net sales 342,865.00 403,555.00
Sales cost (313,875.00) (370,980.00)
Gross profit 28,990.00 32,575.00
General expenses (21,057.00) (23,765.00)
Gross profit 7,933.00 8,810.00
Other income 419.00 432.00
Interest paid (475.00) (698.00)
Profit before taxes 7,877.00 8,544.00
Income tax (2,363.10) (2,990.40)
Net profit 5,513.90 5,553.60

Additional data:
a) The Depreciation for the year 2015 is $811
b) Dividends paid were $40.00
c) The capital increase was a cash contribution of $1,120.00
 DIRECT METHOD
AGUSTINO SA
CASH FLOW STATEMENT AS
OF DECEMBER 31, 201

(Use-Application) (Source-
Origin) OPERATION ACTIVITIES
(249.60) source Customer collection
(2,848.00) usage Payment to suppliers
(2,390.00) usage Payment to operating expenses
(36.00) use Interest payment
Payment for taxes
Payment or collection by other sources of operation

(2,230.00) usage CASH FLOW FROM OPERATING ACTIVITY

INVESTMENT ACTIVITIES
(+/-) Cash In/Out
Property, plant and equipment

(100.00) use CASH FLOW FROM INVESTMENT ACTIVITY

551.00 source
1,166.00 source FINANCIAL ACTIVITIES
- (+/-) Cash In/Out
(1,308.00) usage Capital
Dividends paid
Financing by short/long term loans

1,120.00 source CASH FLOW FROM FINANCING ACTIVITY

NET CASH FLOW FOR THE YEAR
(+) CASH BALANCE AT THE BEGINNING OF THE YEAR
(=) CASH BALANCE AT THE END OF THE YEAR
 CHARGES TO CUSTOMERS FOR SALES Current year
401,139.00 sales
(372,819.00) ( + ) Accounts receivable from customers from to ( - )
(22,990.00) Accounts receivable from customers from to ( + )
(698.00) Advances from customers from the current year ( - )
(1,824.40) Advances from customers from the previous year ( = )
Collections from customers

$ 2,807.60 PAYMENT TO SUPPLIERS FOR PURCHASE Current

year's cost of sales (-) Previous year's inventories
(+) Inventories current year
(=) Purchases
(+) Accounts payable to suppliers
(2,230.00)
(-) Accounts payable to suppliers d
( = ) Payment to suppliers
(2,230.00)

PAYMENT OF OPERATIONAL EXPENSES

Current year sales expenses
(-) Expenses payable for the current year
1,120.00
(40.00) (+) Administration expenses for the
(1,408.00) (+) Expenses attached by in front of
p Expenses attached by in front of
(-)
(328.00) p
(+) Expenses payable from the
249.60 previous year of operating expenses
( = ) Payment
4,675.00
4,924.60 PARTICIPATION PAYMENT FOR WORK
- 15% Profit for workers
(+) 15% of profits payable from to
(-) 15% of profits payable for the year
( = ) Payment 15% of profits for work

PAYMENT OF INCOME TAX

Income tax
(+) Tax payable from the previous year
(-) Tax payable for the current year
( = ) Payment of income tax

INTEREST PAYMENT
Financial expenses (interest)
(+) interest payable from the previous year
(-) Interest payable for the current year
( = ) Interest payment
 403,987.00
previous year 12,582.00
current year (15,430.00)
to the -

ior -

401,139.00

Yes
370,980.00
(11,480.00)
13,870.00
373,370.00
past year 8,632.00
the current year (9,183.00)
372,819.00

22,954.00
current -

l current year 690.00

the previous year (654.00)
-

22,990.00

GARDENERS

previous year
or current
jadores -
 2,990.40
or 598.00
(1,764.00)
1,824.40

698.00
-

698.00
EXERCISE No. 4 CASH FLOW STATEMENT
With the following financial statements:
1. Calculate the variations from one period to another
2. Prepare the cash flow statement using the direct method.
3. Prepare the cash flow statement using the indirect method. INDIRECT METHOD
AGUSTINO SA
CASH FLOW STATEMENT
AS OF DECEMBER 31, 2015

AGUSTINO SA OPERATING CASH FLOW

STATEMENT OF FINANCIAL POSITION NET PROFIT $$ 5,553.60
AT DECEMBER 31
(+/-) Values that do not represent cash in/out: 811.00
Depreciation expense
(Use-Application) 811.00
ASSET 2014 2015 Variation (Source-Origin) -
Cash 4,675.00 4,924.60 249.60 (249.60) source (-/+) Increases or Decrease in Current Assets and Liabilities: $ (3,557.00)
Accounts Receivable 12,582.00 15,430.00 2,848.00 (2,848.00) usage Customers - Accounts Receivable (2,848.00)
Inventories 11,480.00 13,870.00 2,390.00 (2,390.00) usage Inventories (2,390.00)
36.00 (36.00) use Advance payments (36.00)
Anticipated spendings 654.00 690.00
TOTAL CURRENT ASSETS 29,391.00 34,914.60 Suppliers - Accounts Payable 551.00
NON-CURRENT ASSET Other Accounts Payable 1,166.00
Property Plant and Equipment 29,870.00 32,100.00 2,230.00 (2,230.00) usage -
Accumulated depreciation (4,702.00) (11,027.00) (6,325.00) $ 2,807.60
TOTAL NON-CURRENT ASSETS 25,168.00 21,073.00 NET CASH FLOW FROM OPERATING ACTIVITIES
TOTAL ASSETS 54,559.00 55,987.60
INVESTMENT CASH FLOWS (+/-) Cash Inflows/Outflows
PASSIVE Property, plant and equipment (2,230.00)
Bank obligations 4,300.00 4,200.00 (100.00) (100.00) use -
Suppliers 8,632.00 9,183.00 551.00 551.00 source NET FLOW FROM INVESTMENT ACTIVITIES $ (2,230.00)
1,166.00 1,166.00 source
Accumulated Tax Payable 598.00 1,764.00
TOTAL CURRENT LIABILITIES 13,530.00 15,147.00 FINANCING FLOWS
(1,308.00) (1,308.00) usage
Long term obligations 12,650.00 11,342.00 (+/-) Cash In/Out
TOTAL CURRENT LIABILITIES 12,650.00 11,342.00 Capital 1,120.00
TOTAL LIABILITIES 26,180.00 26,489.00 Dividends paid (40.00)
HERITAGE Financing by short/long term loans (1,408.00)
Social capital 20,000.00 21,120.00 1,120.00 1,120.00 source -
Bookings 2,865.00 2,865.00 NET FLOW FROM FINANCING ACTIVITIES $ (328.00)
Usefulness of exercise 5,514.00 5,513.60 NET INCREASE OR DECREASE IN CASH FOR THE YEAR $ 249.60
TOTAL ASSETS 28,379.00 29,498.60 (+) Effective at the beginning of the year $$$ 4,675.00
TOTAL LIABILITIES AND EQUITY 54,559.00 55,987.60 EFFECTIVE AT END OF PERIOD 4,924.60
- -

AGUSTINO SA
STATEMENT OF INCOME
AT DECEMBER 31
2014 2015
Net sales 342,865.00 403,555.00
Sales cost (313,875.00) (370,980.00)
Gross profit 28,990.00 32,575.00
General expenses (21,057.00) (23,765.00)
Gross profit 7,933.00 8,810.00
Other income 419.00 432.00
Interest paid (475.00) (698.00)
Profit before taxes 7,877.00 8,544.00
Income tax (2,363.10) (2,990.40)
Net profit 5,513.90 5,553.60

Additional data:
a) The Depreciation for the year 2015 is $811
b) Dividends paid were $40.00
c) The capital increase was a cash contribution of $1,120.00