Question

0 Comparative Balance Sheet Waterman Pet Supply, Inc. Comparative Balance Sheet December 31, 2018 and 2017 Increase (Decrease) 2018 2017 Current Assets Cash and cash equivalents Accounts receivable Inventory Fixed Assets 6,300 $ 25,100 91,500 7,000 $ 26,400 89,500 (700) (1,300) 2,000 Print Done

Answer 1

Waterman Pet Supply, Inc.
Statement of Cash Flows
Year Ended December 31,2018
Cash flows from operating activities:
Net income	$68,900
Adjustments to reconcile net income to net cash
Provided by operating activities:
Depreciation expense	$4,000
Decrease in accounts receivable	$1,300
Increase in inventory	($2,000)
Decrease in accounts payable	($4,700)
Increase in accrued liabilities	$2,100
Net Cash flows from operating activities (i)		$69,600
Cash flows from Investing activities:
Purchase of land	($28,200)
Purchase of equipment	($8,000)
Net Cash flows from Investing activities (ii)		($36,200)
Cash flows from financing activities:
Payment for notes payable	($27,000)
Issuance of common stock	$23,200
Cash paid for dividends	($30,300)
Net Cash flows from financing activities (iii)		($34,100)
Net increase(decrease) in cash (i)+(ii)+(iii)		($700)
Cash balance, December 31,2017		$7,000
Cash balance, December 31,2018		$6,300

Calculations:

i.Purchase of equipment:

Beginning, equipment	$49,500
Depreciation expense	($4,000)
Ending, equipment	($53,500)
Purchase of equipment	($8,000)

ii. Cash paid for dividends:

Retained earnings, Beginning	$1,900
Net income	$68,900
Retained earnings, Ending	($40,500)
Cash paid for dividends	$30,300