Question

Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017.

Booster Company A1 Company Facts:

Account Balances June 30, 2017 June 30, 2018 Debits $ $ L 361,700 100,000 11,700 1,500 168,750 45.000 Cash Accounts Receivable Marketable Securities (at cost) Allowance for Change in Value Construction in Process Prepaid Expenses Investments (long-term) Leased Equipment Building Deferred tax asset Land Discount on Bonds Payable Totals 880,550 125,000 13,000 1,800 405,000 10,000 13,500 20,000 30,000 5,375 10,500 2.200 10,500 1,305 1,482,855 734,525 $ 4,500 210,000 3,300 9,000 Credits Allowance for doubtful accounts Accounts Payable Deferred tax liability Income Taxes Payable Note Payable (long-term) Accumulated Depreciation on Building Accumulated Depreciation on Leased Asset Lease obligation Interest payable on lease obligation Interest payable (Bonds) Bonds payable Billings on contruction in process Pension liability Convertible preferred stock, $100 par Common Stock, $10 par Additional Paid-in Capital Unrealized Increase in Value of Marketable Securities Retained Earnings Totals 6,000 $ 87,500 1,000 3,500 3,500 2,500 - - - - - 150,000 150,000 9,000 14,000 8,700 | 1,500 297,325 734,525 3,000 18,000 1,800 1,800 45,000 325,000 400,000 24,500 13,700 1,800 421,455 1,482,855

PLEASE FILL IN THE BELOW CHARTS FOR THE ASSIGNMENT:------------------------------------------------------------------

Answer 1

BOOSTER CONSTRUCTION COMPANY
Cash Flows Worksheet
For Year Ended June 30,2018
	Balances		Change		Worksheet Entries
Account Titles	6/30/2017	6/30/2018	Increase/(Decrease)		Debit	Credit
Debits
Cash	$ 3,61,700	$   8,80,550	$                      5,18,850		$     3,000
Accounts Receivable	$ 1,00,000	$   1,25,000	$                          25,000
Marketable Securities (at cost)	$     11,700	$       13,000	$                            1,300
Allowance for change in value	$       1,500	$         1,800	$                                300			$        300
Construction in process	$ 1,68,750	$   4,05,000	$                      2,36,250
Prepaid Expenses	$     45,000	$       10,000	$                        -35,000
Investments (Long Term)	$                -	$       13,500	$                          13,500
Leased Equipment	$                -	$       20,000	$                          20,000
Building	$     30,000	$                  -	$                        -30,000
Deferred Tax Asset	$       5,375	$         2,200	$                          -3,175
Land	$     10,500	$       10,500	$                                     -
Discount on Bonds payable	$                -	$         1,305	$                            1,305
	$ 7,34,525	$ 14,82,855	$                      7,48,330
Credits			$                                     -
Allowance for doubtful accounts	$       6,000	$         4,500	$                          -1,500
Accounts Payable	$     87,500	$   2,10,000	$                      1,22,500
Deferred Tax Liability	$       1,000	$         3,300	$                            2,300
Income Taxes payable	$       3,500	$         9,000	$                            5,500
Note payable (Long term)	$       3,500	$                  -	$                          -3,500		$     3,500
Accumulated Depreciation on Building	$       2,500	$                  -	$                          -2,500
Accumulated Depreciation on Leased asset	$                -	$         3,000	$                            3,000
Lease Obligation	$                -	$       18,000	$                          18,000
Interest payable on Lease obligation	$                -	$         1,800	$                            1,800
Interest payable (Bonds)	$                -	$         1,800	$                            1,800
Bonds Payable	$                -	$       45,000	$                          45,000
Billings on Construction in Process	$ 1,50,000	$   3,25,000	$                      1,75,000
Pension Liability	$ 1,50,000	$   4,00,000	$                      2,50,000
Convertible Preferred stock	$       9,000	$                  -	$                          -9,000		$     9,000
Common Stock	$     14,000	$       24,500	$                          10,500			$ 10,500
Additional paid-in capital	$       8,700	$       13,700	$                            5,000			$     5,000
Unrealised increase in value of marketable securities	$       1,500	$         1,800	$                                300		$        300
Retained Earnings	$ 2,97,325	$   4,21,455	$                      1,24,130
	$ 7,34,525	$ 14,82,855	$                      7,48,330		$ 15,800	$ 15,800

Booster Construction Company
Statement of Cash Flows
For year Ended June 30,2018
Operating Activities:
Net Income	$1,24,130
Adjustments for Non-Cash items:
Depreciation on Leased asset	$3,000
Loss on Building Destruction	$1,500
Share of Income in Ricochet co.	-$4,000
Discound on bond written off {(450*3)/10 yrs*4 months/12}	$45
Adjustments from working capital items:
Inventory{(168750-150000)-(405000-325000)}	-$61,250
Accounts Receivable	-$25,000
Marketable Securities (at cost)	-$1,300
Prepaid Expenses	$35,000
Deferred Tax Asset	$3,175
Allowance for doubtful accounts	-$1,500
Accounts Payable	$1,22,500
Deferred Tax Liability	$2,300
Income Taxes payable	$5,500
Interest payable on Lease obligation	$1,800
Interest payable (Bonds)	$1,800
Pension Liability	$2,50,000
Payment of Dividend	$650
Net Cash provided (used) by Operating Activities		$4,58,350
Investing Activities:
Investment in Ricochet co.	-$9,500
Insurance claim received for building	$26,000
Net Cash provided (used) by Operating Activities		$16,500
Financing Activities:
Issue of common stock (300*10)	$3,000
Payment of Dividend	-$650
Issue of Bonds (450*97)	$43,650
Principal payment of Lease obligation	-$2,000
Net Cash provided (used) by Operating Activities		$44,000
Net Increase in cash		$5,18,850
Cash,June 30,2017		$3,61,700
Cash,June 30,2018		$8,80,550
Investing and Financing activities not affecting cash:
Investing:
Lease Obligation balance	$18,000
Unrealised increase in value of marketable securities	$300
Financing:
Conversion of preference shares to common stock	$5,000
Conversion of note payable to common stock	$2,500
Increase in additional paid in capital due to conversions	$5,000