Question

i More Info a. Acquisition of plant assets was $160.000. Of this amount. $ 105,000 was paid in cash and $55,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $45,000. c. Proceeds from the issuance of common stock totaled $35,000 d. Payment of a long-term note payable was $17,000. e. Payment of dividends was $9,000. f. From the balance sheets: December 31, 2018 2017 Current assets: Cash $ $ Accounts receivable Inventory Prepaid expenses 165,000 36,000 40,000 10,000 41,800 53,000 90,000 8,300 Current liabilities: $ $ Accounts payable Accrued liabilities 31,000 99,000 10,000 79,000

Answer 1

Cash Flow Statement
Indirect Method'
Cash Flow from Operations
Net Income		$        31,900.00
Adjustments
Depreciation	$       36,000.00
Decrease in Accounts receivable	$       17,000.00
Decrease in Inventories	$       50,000.00
Increase in Prepaid Expenses	$       (1,700.00)
Increase in Accounts Payable	$       21,000.00
Increase in Accrued Liabilities	$       20,000.00	$     1,42,300.00
Cash from Operating activities		$     1,74,200.00
Cash Flow from Investing Activities
Cash paid for Purchase of Plant assets	$ (1,05,000.00)
Sale of Land	$       45,000.00
Cash from Investing Activities		$      (60,000.00)
Cash from Financing Activities
Issue of Common Stock	$       35,000.00
Payment of note	$     (17,000.00)
Dividend Paid	$       (9,000.00)
Cash generated from Financing Activities		$           9,000.00
Net Increase/ Decrease in Cash		$     1,23,200.00
Beginning Cash		$        41,800.00
Ending Cash		$     1,65,000.00
Non Cash Investing and Financing Activities-
Issue of note for acquisition of plant	$       55,000.00