Question

The balance sheet for Plasma Screens Corporation, along with additional information, are provided below. 2017 $ PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 Assets: Current assets: Cash $ 114,250 Accounts receivable 79,200 Inventory 98,000 Prepaid rent 4,600 Long-term assets: Land 495,000 Equipment 802,000 Accumulated depreciation (431,000) 128,400 93,500 82,700 2,300 495,000 685,000 (274,000) Total assets $1,162,050 $1,212,900 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings $ 102,000 $ 6,450 8,600 87,700 12.900 5,300 107,500 215,000 715,000 222,500 715,000 177 000 Total liabilities and stockholders' equity $1,162,050 $1,212,900

Answer 1

PLASMA SCREENS CORPORATION Statements of Cash Flows Particulars Amount Amount Cash Flows from Operating activities: Net Income 72,000 Adjustments to reconcile net income to net cash flows from operating activities: Add: Depreciation expense $ 157,000 $ $ ($ 93,500-$79,200) ($ 82,700-$ 98,000) ($ 2,300-$ 4,600) ($ 102,000-$ 87,700) (S 6,450-$12,900) ($ 8,600-$ 5,300) Decrease in Accounts Receivable 14,300 (15,300) (2,300) Increase in Inventory Increase in Prepaid Rent Increase in Accounts Payable Decrease in Interest Payable 14,300 $ (6,450) Increase in Income taxes payable $ 3,300 $ 164,850 236,850 Net Cash flow provided by Operating activities Investment activities: Cash paid for purchase of equipment Net Cash used in Investing activities $(117,000) (117,000) Financing activities: Cash paid to discharge Notes payable Cash dividends paid $(107,500) (26,500) $ (134,000) Net Cash flow from financing activities Net increase (decrease) in cash Cash at the beginning of the period Cash at the ending of the period (14,150) $ 128,400 $ 114,250 $