Lane Company had the following Income Statement for 2017 and Balance sheets as of December 31, 2016 and 2017. Determine the net cash provided by or used for operating activities for 2017, the cash provided by or used for investing activities, and the cash provided by or used for financing activities.
Lane Company |
|
Income Statement |
|
For the year ended December 31, 2017 |
|
Sales |
345,000 |
Cost of goods sold |
201,000 |
Gross margin |
144,000 |
Operating expenses |
46,200 |
Income from operations |
97,800 |
Loss on sale of equipment* |
(1,000) |
Income before taxes |
96,800 |
Income tax expense |
18,200 |
Net income |
78,600 |
Lane Company |
||
Balance Sheet |
||
December 31,2017 |
December 31,2016 |
|
Assets |
||
Cash |
$ 124,000 |
$ 39,800 |
Accounts receivable |
71,000 |
73,200 |
Merchandise inventory |
68,000 |
72,000 |
Property and equipment |
290,000 |
310,000 |
Less: Accumulated depreciation |
(145,000) |
(165,000) |
|
408,000 |
330,000 |
Accounts payable |
$ 60,000 |
$ 55,000 |
Wages payable |
2,700 |
2,200 |
Note payable, long-term |
73,000 |
77,000 |
Contributed capital |
102,400 |
89,400 |
Retained earnings |
169,900 |
106,400 |
408,000 |
330,000 |
*Lane sold equipment for $4,000. It had an original cost of $35,000 and accumulated depreciation of $30,000. There was a loss of $1,000 recognized on the sale. Lane sold stock for $13,000 and paid dividends of $15,100. Show dividends as a financing activity (rather than an operating activity).
Answer and show work:
What was depreciation expense?
What were acquisitions?
Cash provided by (if positive) or cash used for (if negative) operating activities:
Cash provided by (if positive) or cash used for (if negative) investing activities:
Cash provided by (if positive) or cash used for (if negative) financing activities:
Answers
Cash provided by (if positive) or cash used for (if negative) operating activities: Cash provided=$101300
Cash provided by (if positive) or cash used for (if negative) investing activities:Cash used = $11000
Cash provided by (if positive) or cash used for (if negative) financing activities: Cash used =$6100
Cash Flow Statement |
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Cash Flow from Operating Activities: |
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Net Income |
$ 78,600.00 |
|
Add: Adjustments |
||
Loss on sale of Equipment |
$ 1,000.00 |
|
Depreciation expense |
$ 10,000.00 |
|
increase in Accounts Payables |
$ 5,000.00 |
|
Decrease in Accounts receivables |
$ 2,200.00 |
|
Decrease in Inventory |
$ 4,000.00 |
|
Increase in wages payable |
$ 500.00 |
|
$ 22,700.00 |
||
A. Cash Flow from Operating Activities |
$ 1,01,300.00 |
|
Cash Flow from Investing Activities: |
||
Sale of Equipment |
$ 4,000.00 |
|
Purchase of Equipment |
$ (15,000.00) |
|
B. Cash flow from Investing Activities |
$ (11,000.00) |
|
Cash Flow from Financing Activities: |
||
Issue of Common Stock |
$ 13,000.00 |
|
Dividend paid |
$ (15,100.00) |
|
Retirement of notes payable |
$ (4,000.00) |
|
C. Cash Flow from Financing Activities |
$ (6,100.00) |
|
Increase (Decrease) in cash [A+B+C] |
$ 84,200.00 |
|
Add: cash at the beginning of the year |
$ 39,800.00 |
|
Cash at the end of the year |
$ 1,24,000.00 |
Lane Company had the following Income Statement for 2017 and Balance sheets as of December 31,...
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