Question

Exercise 12-9 Here are comparative balance sheets for Splish Brothers Inc.. 2018 Splish Brothers Inc. Comparative Balance Sheets December 31 Assets 2019 Cash $ 72,600 Accounts receivable 86,300 Inventory 170,500 Land 73,800 Equipment 260,000 Accumulated depreciation equipment (65,900) Total $597,300 Liabilities and Stockholders' Equity Accounts payable $ 35,400 Bonds payable 151,100 Common stock ($1 par) 214,900 Retained earnings 195,900 Total $597,300 $ 33,000 71,400 186,600 100,800 200,800 (34,100) $558,500 $ 47,000 204,000 174,700 132,800 $558,500 Additional information: 1. Net income for 2019 was $104,800. 2. Cash dividends of $41,700 were declared and paid. 3. Bonds payable amounting to $52,900 were redeemed for cash $52,900. 4. Common stock was issued for $40,200 cash. 5. No equipment was sold during 2019, but land was sold at cost.

Answer 1

$104.800 Splish Brothers Inc. Statement of Cash Flows For year ended December 31, 2019 Cash flows from operating activities Net Income Adjust to reconcile net income to Net cash provided by operating activities & change in working capital Depreciation Expenses Increase in Accounts receivable Decrease in Inventory Decrease in Accounts payable $31.800 -$14.900 $16.100 -$11,600 $21.400 $126,200 Net cash Provided by operating activities Cash flows from investing activities Sale of Land Purchase of Equipment Net cash Provided by investing activities $27.000 -$59.200 -$32,200 Cash flows from financing activities Payments of Bonds payable Issued of common stock Payment of Dividends Net cash Provided by financing activities -$52.900 $40,200 -$41,700 -$54,400 Net cash procced Add: beginning cash and cash equivalent Ending cash and cash equivalent $39.600 $33.000 $72,600