Question

The income statement and additional data of Energy Plus, Inc. follows: :: (Click the icon to view the income statement.) (Click the icon to view the additional data) Prepare Energy Plus's statement of cash flows for the year ended September 30, 2016, using the indirect method. Include a separate section for non-cash investing and financing activities Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty, do not select a label or enter a zero.) Energy Plus, Inc. Statement of Cash Flows Year Ended September 30, 2016 Cash Flows from Operating Activities: Net Income Choose from any list or enter any number in the input fields and then click Check Answer

Answer 1

3 $ 62,000 Energy Plus, Inc. Statement of Cash flows Year Ended September 30, 2016 4 Cash flow from operating activities 5 Net income Adjustment to reconcile net income to net cash 6 provided by operating activities 7 Depreciation expense $ 8 Decrease in account receivable $ 9 Increase in inventory $ 10 Increase in account payable $ 11 Decrease in accrued liabilities $ 12 13 Net cash flow from operating activities 26,000 9,000 -9,000 9,000 -4,000 $ 31,000 $ 93,000 $ 20,000 $ -109,000 $ -89,000 15 Cash flows from investing activities 16 Receipts from sale of land 17 Acquisition of plant assets 18 Net cash used for investing activities 19 20 Cash flow from financing activities 21 Payment of notes payable 22 Payment of dividend 23 Issuance of common stock 24 Net cash provided by financing activities 25 Net increase in cash 26 Cash balance, September 30, 2015 27 Cash balance, September 30, 2016 $ $ $ 9,000 -6,000 33,000 $ 18,000 $ 22,000 $ 15,000 $ 37,000 28

29 Non Cash investing and financing activities 30 Acquisition of land in exchange of notes payable 31 Total non cash investing and financing activities $ 10,000 $ 10,000

Energy Plus, Inc. Statement of Cash flows Year Ended September 30, 2016 4 Cash flow from operating activities 5 Net income 62000 Adjustment to reconcile net income to net cash 6 provided by operating activities 7 Depreciation expense 26000 8 Decrease in account receivable =58000-49000 9 Increase in inventory =87000-96000 10 Increase in account payable =33000-24000 11 Decrease in accrued liabilities =13000-17000 12 =SUM(B7:B11) 13 Net cash flow from operating activities =+C5+C12 14 15 Cash flows from investing activities 16 Receipts from sale of land 20000 17 Acquisition of plant assets - 109000 18 Net cash used for investing activities 19 20 Cash flow from financing activities 21 Payment of notes payable |-9000 22 Payment of dividend -6000 23 Issuance of common stock 33000 24 Net cash provided by financing activities =+B22+B21+B23 25 Net increase in cash =+C13+C18+C24 26 Cash balance, September 30, 2015 15000 27 Cash balance, September 30, 2016 =+C25+C26 =+B16+R17 28I