Question

OSearch 15e_PR 13-1A - Excel X AutoSave Off File Page Layout Formulas Review View Help Share Home Insert Data Comments X Σ 4 Insertv 10A A Y ab Ce Arial Narrow Wrap Text X Delete L Paste a Sort & Find & Conditional Format as Cell Ideas Sensitivity Merge & Center $ % 8 48 0.00 00 A BIU Y Y Filter Select Format Table Styles Formatting Sensitivity Clipboard Font Alignment N Number Styles Cells Editing Ideas A P36 X AF A BC D E F G Н IJ K L M O P S T U YA AB AC AD AG AH Al AJ AK AL AM. AN 13 14 15 Livers Inc Statement of Cash Flows 16 17 For the Year Ended December 31, 20Y3 18 Cash flows from (used for) operating activities: 19 20 Net income Adjustments to reconoile net income to net cash flow from operating activities: 21 22 23 Depreciation 24 Gain on sale of investments 25 Changes in current operating assets and liabilities: Increase in accounts receivable 26 Increase in inventories 27 Increase in acoounts payable 28 29 Decrease in accrued expenses payable Net cash flow from operating activities 30 31 32 Cash flows from (used for) investing activities: 33 Cash received from sale of investments Cash paid for purohase of land Cash paid for purchase of equipment Net cash flow used for investing activities 34 35 36 37 38 Cash flows from (used for) financing activities: Cash received from sale of common stock 39 40 Cash paid for dividends Net cash flow from finanoing aotivities 41 42 43 Net increase (decrease) in cash 44 Cash balance, January 1, 20Y3 Cash balanoe, December 31, 20Y3 45 46 47 Pr. 13-1A 70% 1:21 PM Type here to search а (?A X 11/25/2019

Answer 1

Cash Flow Statement (Indirect Method)
Particulars	Amount	Amount
Profit before income tax		$    500,000.00
Adjustments to reconcile net income to:
Net cash provided by operating activities
Gain on sale of Investment	$    (75,000.00)
Depreciation	$    100,000.00
Increase in Accounts Receivable	$    (50,000.00)
Increase in Inventory	$    (20,000.00)
Increase in Accounts Payable	$      40,000.00
Decrease in Accrued Expenses	$       (5,000.00)
Net Cash Generated		$    (10,000.00)
Net cash provided by operating activities	(A)	$    490,000.00
Cash Flows from Investing Activities
Purchase of Land	$ (500,000.00)
Sale of Investment	$    175,000.00
Purchase of Equipment	$ (200,000.00)
Net cash provided by investing activities	(B)	$ (525,000.00)
Cash Flows from Financing Activities
Common Stock Issued	$    125,000.00
Dividend paid (Note 1)	$    (85,000.00)
Net cash provided by Financing activities	(C')	$      40,000.00
Net increase/decrease in cash	(A+B+C')	$        5,000.00
Add:Opening cash balance		$    150,000.00
Closing cash balance		$    155,000.00

		Dividend Payable (Note 1)
To Cash		$    85,000.00	Beginning Balance		$      25,000.00
Ending Balance		$    30,000.00	By Dividends		$      90,000.00
		$ 115,000.00			$    115,000.00