Question

Score: U of 5 pts 4 of 5 (3 complete) HW Score: 42 88%, E13-13A (similar to) Balance Sheet as follows The comparative balance sheet for Fair Isle Travel Services, Inc. for December 31, 2017 and 2016 (Click the icon to view the comparative balance sheet) The following information is taken from the records of Fall Isle Travel Services, Inc (Click the icon to view the transaction data.) Prepare the statement of cash flows indirect method for Follole Travel Services, Incfor 2017 Fair Isle Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 2011 Prepare the statement one section at a time (Use parentheses on a mission to be to be subtracted Fair Isle Travel Services, Inc. Statement of Cash Flows Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: 43.000 $ 11 000 1000 58.000 16 000 Adjustments to reconcile net income to cash basis Total current assets $ 185,000 $ 124.000 Transactions $ Equipment 110,000 $ 118,000 59.000 19.000) $2.0001 2.000 Less. Accumulated depreciation Total assets S 358 000 $ 289,000 a. Land was sold for $4,500. b. Equipment was purchased for cash c. There were no disposals of equipment de d. The common stock was issued for a e. Net income for 2017 was $37.000 f. Cash dividends paid during the year Liabilities $ 25,000 $ 35,000 Net cash provided by used for operatin Print Done in one Choose from any list or enter any number in the mouse click here 3 parts 3 remaining Check Answer Type here to search ote 9 A D /

Answer 1

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Workings	Amount $
Depreciation & Amortization Expense
Closing Balance- Accumulated Depreciation	19,000.00
Less: Opening Balance- Accumulated Depreciation	12,000.00
Depreciation & Amortization Expense	7,000.00
Loss on sale of land
Opening Balance	118,000.00
Closing Balance	110,000.00
Book value of land sold	8,000.00
Sale Value	4,500.00
Loss on sale of land	3,500.00
Decrease in Accounts Receivable
Closing Balance	76,000.00
Less: Opening Balance	79,000.00
Decrease in Accounts Receivable	(3,000.00)
Increase in Inventory
Closing Balance	58,000.00
Less: Opening Balance	16,000.00
Increase in Inventory	42,000.00
Decrease in Prepaid Insurance
Closing Balance	8,000.00
Less: Opening Balance	18,000.00
Decrease in Prepaid Insurance	(10,000.00)
Decrease in Accounts Payable
Closing Balance	25,000.00
Less: Opening Balance	35,000.00
Decrease in Accounts Payable	(10,000.00)
Increase in Wages Payable
Closing Balance	27,000.00
Less: Opening Balance	26,000.00
Increase in Wages Payable	1,000.00
Increase in Interest Payable
Closing Balance	12,000.00
Less: Opening Balance	11,000.00
Increase in Interest Payable	1,000.00
Increase in Tax Payable
Closing Balance	10,000.00
Less: Opening Balance	7,000.00
Increase in Tax Payable	3,000.00
Equipment purchased
Closing Balance	82,000.00
Less: Opening Balance	59,000.00
Equipment purchased	23,000.00
Notes Payable issued
Closing Balance	102,000.00
Less: Opening Balance	93,000.00
Notes Payable issued	9,000.00
Common stock issued during the year
Closing Balance	149,000.00
Less: Opening Balance	115,000.00
Common stock issued during the year	34,000.00

Fair Isle Travel
Cashflow statement	Amount $	Amount $
Particulars
Net Income		37,000.00
Adjustment to reconcile Net Income to Net Cash
Add:
Depreciation & Amortization Expense		7,000.00
Loss on sale of land		3,500.00
Cash flow from Operations		47,500.00
Changes in Current Assets/Current Liabilities
Decrease in Accounts Receivable	3,000.00
Increase in Inventory	(42,000.00)
Decrease in Prepaid Insurance	10,000.00
Decrease in Accounts Payable	(10,000.00)
Increase in Wages Payable	1,000.00
Increase in Interest Payable	1,000.00
Increase in Tax Payable	3,000.00	(34,000.00)
Net cash provided by operating activities		13,500.00
Cash flow from investing activities
Equipment purchased	(23,000.00)
Land sold	4,500.00
Net cash used for investing activities		(18,500.00)
Cash flow from financing activities
Notes Payable issued	9,000.00
Common stock issued during the year	34,000.00
Dividends paid	(6,000.00)
Net cash provided by (Used for) financing activities		37,000.00
Net Increase/(Decrease) in cash		32,000.00
Cash Balance, beginning		11,000.00
Cash Balance, ending		43,000.00