Question

USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING 3 QUESTIONS Mellon Company Balance Sheet For the Years Ending December 31, 2015 and 2016 (All figures in dollars) Cash Account receivable Inventory Total current assets Gross fixed assets (Accumulated depreciation) Net fixed assets Total assets 2015 1,800 4,010 10,100 15,910 55,800 (9,760) 46,040 61,950 2016 1,840 4,210 9,450 15,500 63,840 (11,050) 52,790 68,290 Notes payable Accounts payable Accruals Current portion of LT debt Total current liabilities Lont-term debt Common stock Paid in capital Retained earnings Total liabilities and equity 620 2,260 1,600 1,590 6,070 37,250 1,000 4,950 12,680 61,950 1,000 4,130 1,850 1,730 8,710 34,780 1,500 9,460 13,840 68,290 Additional Data from 2016 Income Statement: Sales in 2016 238,000

Answer 1

25 Cash flow from operating activities for 2016 26 Cash flow from Investing activities for 2016 27 Cash flow from Financing activities for 2016 S S S 14,360 (8,040) 6,280 $ 9,980 Mellon company Statement of Cash flows - Indirect method For the Year Ending December. 31,2016 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash Provided by Operating activities Depreciation expenses $ 1,290 Accounts receivable increase $ (200) Inventory Decrease $ 650 Accounts payable Increase 1,870 Accurals Increase 250 Current portion of Long term bebt increase 140 Notes Payable increase 380 Net Cash flow from operating activities $ $ 4,380 14,360

$ $ S (2,470) (8,820) 5,010 Cash Flows from Financing Activities Repayment of Long term debt Payment of Dividends Issuance of Common Stock Net Cash flow from Financing activities Net Increase in Cash Beginning Cash balance Ending Cash balance $ $ $ $ (6,280) 40 1,800 1,840