Question

Bandit Corporation Income Statement For the Year Ended December 31, 2019 Revenues - Part 5 Operating Expenses Depreciation Expense 6.580,000 5.391.225 Loss on Sale of Machinery 315,000 Total Expenses 40.000 Income before Taxes 5.751.225 Income Tax Expense 621,775 Net Income 310,000 Bandit Corporation Partial Balance Sheet 12/ 31/2018 12/31/2019 Cash Increase (Decreas) 672,000 980.775 308.775 Accounts Receivable 775,000 615,000 (160,000) Inventory 834,000 913,000 79.000 Machinery 1,750,000 2,067,000 317,000 Land 175,000 175,000 Accounts Payable 521,000 579,000 58,000 Bonds Payable 150,000 60,000 (90,000) Mortgage Payable Treasury Stock - Purchased 175,000 175,000 100,000 100,000 1. Machinery was purchased at a cost of $635,000 2. Machinery with a cost of $318,000 was sold for $270,000 which resulted in a loss of $48,000 3. Dividends of $150,000 were paid in 2019 4. Bonds were redeemed for cash. 5. Land was purchased by issuing to a mortgage payable to the seller.

Answer 1

Bandit Corporation
Statement of Cash Flows
For the Year Ended December 31, 2019
Cash flows from Operating Activities:
Net income		511775
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation expense	315000
Loss on sale of machinery	48000
Decrease in accounts receivable	160000
Increase in inventory	-79000
Increase in accounts payable	58000	502000
Net cash flows from Operating Activities		1013775
Cash flows from Investing Activities:
Purchase of machinery	-635000
Sale proceeds from machinery	270000
Net cash flows from Investing Activities		-365000
Cash flows from Financing Activities:
Redemption of bonds payable	-90000
Purchase of treasury stock	-100000
Payment of dividends	-150000
Net cash flows from Financing Activities		-340000
Total Increase (Decrease) in Cash		308775
Cash Balance - 12/31/2019		980775
Cash Balance - 12/31/2018		672000
Increase (Decrease)		308775
Schedule of Non Cash Financing and Investing
Land purchased by issuing mortgage payable		175000