Hello,
I was wondering if someone could help me with building my cash flow as I am unable to make it tie to my beginning and ending cash. It is for a homework and we are asked to build financial statements from scratch. I have my Balance sheet and income statement, but my cash flow isn't tieing.
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Im pretty sure the owners equity section is a little wonky and that's whats throwing you off (the assignment was poorly designed). The owners equity is increased by both the net income through retained earnings for the year and the additional paid in capital but for some reason it looks like the assignment lumped them both together as additional paid in capital. So in reality you're double counting your net income (first time at the top of the CF statement which is good and then again when you have the cash flow from financing). CF from financing should be the figure you got, less Net income.
Also you're not accounting for your Depreciation in your CapEx Figure you added it back into the Net Income figure but then used the Net PPE figure when doing your Capex rather than gross. Think of it this way, when you buy a building the cash outflow of the building is its gross figure, not the gross minus depreciation at the end of the year, so while the depreciation is a "non cash expense" that doesnt mean you exclude it from the Capex equation.