Question

he comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $270,970 $250,900 Accounts receivable (net) 98,160 90,110 Inventories 277,110 266,820 Investments 0 103,360 Land 142,130 0 Equipment 305,730 235,880 Accumulated depreciation—equipment (71,580) (63,610) Total assets $1,022,520 $883,460 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $185,080 $174,040 Accrued expenses payable (operating expenses) 18,410 22,970 Dividends payable 10,230 7,950 Common stock, $10 par 55,220 43,290 Paid-in capital: Excess of issue price over par-common stock 207,570 120,150 Retained earnings 546,010 515,060 Total liabilities and stockholders’ equity $1,022,520 $883,460 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: The investments were sold for $120,930 cash. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $72,470 credit to Retained Earnings for net income. There was a $41,520 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from investing activities: $ Net cash flow used for investing activities Cash flows from financing activities: $ Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $ Check My Work3 more Check My Work uses remaining.

Answer 1

Statement of cash flow

Cash flow from operating activities
Net income		72470
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense	7970
Gain on sale of investment	-17570
Changes in current operating assets and liabilities:
Increase account receivable	-8050
Increase inventories	-10290
Increase account payable	11040
Decrease accrued expense payable	-4560
		-21460
Net cash flow from operating activities		51010
Sale of investment	120930
Purchase of land	-142130
Purchase of equipment	-69850
Net cash used in investing activities		-91050
Cash flow from financing activities
Dividend paid	-39240
Issue common Stock	99350
Net cash flow from financing activities		60110
Net cash flow		20070
Beginning Cash		250900
Ending Cash		270970