CASH FLOW STATEMENT EXERCISE

Prepare a cash flow statement for MicroDrive (in million dollars) for years Ending Dec.31 by
using the information provided as follows:
Increase in accounts payable
Increase in accounts receivable
Payment of common and preferred dividends
Cash and securities at beginning of the year
Depreciation and amortization
Increase in accruals
Increase in inventories
Cash used to acquire fixed assets
Net income before prepared dividends
Increase in bond
Increase in notes payable
Sales of short term investments

$30.00
($60.00)
($61.50)
$15.00
$100
$10
($200)
($230.00)
$117.50
$174.00
$50.00
$65.00

Calculate i) net cash provided by operating activities, ii) net cash provided by financing
activities, iii) net change in cash and equivalents, and iv) cash and securities at the end of the
year.