Question

Supplemental Homework #10 Exterra Communications reported the following financial statements for 2018: EXTERRA COMMUNICATIONS Income Statement Year ended June 30, 2018 $660 $340 40 Sales revenue Cost of goods sold Depreciation expense Salary expense Other expenses, including income taxes Total expenses Net income la moc89 S 80 EXTERRA COMMUNICATIONS Comparative Balance Sheet June 30, 2018 and 2017 2018 2017 2018 2017 $.39 Thousands Assets Current Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets, net $ 53 Liabilities Current Accounts payable Salary payable Accrued liabilities Long-term notes payable 63 215 Stockholders' Equity Common stock Retained earnings w Total 37 Total 246 $476 $425 as $476 $425 Additional data during 2018: Exterra purchased no investments, but sold one investment. Exterra sold no plant assets, but purchased plant assets. Extensa had only one long-term note payable transaction. Externa had only one common stock transactions Prepare Extensa Communications' statement of cash flows for the year ended June 30, 2018 ch | O Ate . Ô w]

Answer 1

EXTERRA COMMUNICATIONS Statement of Cash Flows for the year ended June 30, 2018 Cash Flow from Operating Activities: Net Income | Adjustments to reconcile Net Income to Net Cash provided by Operating Activities: Depreciation Expense Change in Current Operating Assets and Liabilities: Increase in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Increase in Salary Payable Decrease in Accrued Liabilities 127 -65 Net Cash provided from Operating Activities Cash Flow from Investing Activities: Purchase of Plant Assets Sale of Long Term Investments Net Cash used for Investing Activities Cash Flow from Financing Activities: Issuance of Common Stock Repayment of Long Term Notes Payable Dividend Paid Net Cash used for Financing Activities Net Increase in Cash Add: Cash Balance at the beginning of Year Cash Balance at the end of year -39 23 16 39

Calculation:
Ending Plant Assets, Net = Beginning Plant Assets, Net + Purchases – Depreciation Expense
$215 = $185 + Purchases - $40
Purchases = $70