Question

over frve years 2. Prepa 3. Prepare BRC's e-step format, with all revenues listed together and all income statement for the year ended December 31,201 re BRC's balance sheet at December 31,2018 listed together statement of cash flows for the year ended December 31,2018. tlows from operating activities by the direst method. Format cash f P14A-37A Preparing the statement of cash nlows-direct method Use the Rolling Hills, Inc. data from Problem P14-3MA. Requirements 1. Prepare the 2018 statement of cash flows by the direct method. 2. How will what you learned in this problem help you evaluate an investment? Appendix 14A 1.Net Cash Phow by Op. Act $125,100 Collections from Cust $438.900 P14B-38A Using a spreadsheet to prepare the statement of indirect method Appendix 148 The 2018 comparative balance sheet and income statement follow. Appleton dis of Appleton Group, Inc. posed of a plant asset at book value during 2018. Cash Pmt. of Di 528,300 Cash Pt. lor Acq o Land $25,200 APPLETON GROUP, INC. Income Statement Year Ended r 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit 443,000 205,800 237,200 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses 5 76,800 15,400 49,300 141,500 95,700 Operating Income Other Income and (Expenses): 11,600 (24,400) Interest Revenue Interest Expense Total Other Income and (Expenses) (12,800) 82,900 16,200 66,700 Net Income Before Income Taxes Income Tax Expense Net Income

Answer 1

Appletion Group Inc,
Statement of Cash Flow
For the year ended Dec. 31, 2018
A) Cash Flows from Operating Activities:
Net Income		66,700
Adjustment to reconcile net Cash:
Depreciation Expense	15,400
Decrease in Account Receivables	1,700
Increase in Merchandising inventories	-3,700
Decrease in Account Payable	-1,000
Increase in Accrued Liabilities	1,800
Total Adjustment		14,200
Net Cash provided by Operating Activities		80,900
B) Cash Flow from Investing Activities:
Purchase of Land with cash	-25,200
Purchase of Plant Assets with cash (Note: 1)	-22,800
Net Cash Used In Investing Activities:		-48,000
C) Cash Flow From Investing Activities:
Re-payment of Notes Payable	-14,000
Issue of common stock for cash	8,200
Cash Dividend Paid (Note:2)	-28,300
Net Cash used in Financing Activities:		-34,100
Net Cash in Operation (A+B+C)		-1,200
Add: Beginning Cash Balance		15,900
Ending Cash Balance (Answer)		14,700

Note:1
Beginning Plant Assets	110,750
Less: Plant with original cost Disposed off	11,600
Balance Left	99,150
Ending Balance of Plant Assets	121,950
Less: Remaining Plant Assets	99,150
New Plant Purchased in current year	22,800
Note: 2
Beginning Retained Earning Balance	19,700
Add: Net Income	66,700
Total Balance	86,400
Less: Cash Dividend Paid (balancing figure)	28,300
Ending Retained Earning Balance	58,100