The comparative balance sheets for Beckwith Products Company are presented below.
2019 | 2018 | ||
Assets: | |||
Cash | $ 36,950 | $ 25,000 | |
Accounts receivable | 75,100 | 78,000 | |
Inventory | 45,300 | 36,000 | |
Property, plant, and equipment | 256,400 | 153,000 | |
Accumulated depreciation | 38,650 | 20,000 | |
Total assets | $ 375,100 | $ 272,000 | |
Liabilities and Equity: | |||
Accounts payable | $ 13,100 | $ 11,000 | |
Interest payable | 11,500 | 8,000 | |
Wages payable | 8,100 | 9,000 | |
Notes payable | 106,500 | 90,000 | |
Common stock | 87,800 | 50,000 | |
Retained earnings | 148,100 | 104,000 | |
Total liabilities and equity | $375,100 | $ 272,000 |
Additional Information:
Required:
1. Prepare a statement of cash flows (indirect method) for Beckwith Products for 2019. Use a minus sign to indicate any decreases in cash or cash outflows.
Beckwith Products Company | |||
Statement of Cash Flows | |||
For the Year Ended December 31, 2019 | |||
Cash flows from operating activities: | |||
Net income | $ | ||
Adjustments to reconcile net income to net cash flow from operating activities: | |||
Depreciation expense | $ | ||
Decrease in accounts receivable | |||
Increase in inventory | |||
Increase in accounts payable | |||
Increase in interest payable | |||
Decrease in wages payable | |||
Net cash provided by operating activities | $ | ||
Cash flows from investing activities: | |||
Equipment purchase | $ | ||
Net cash used for investing activities | |||
Cash flows from financing activities: | |||
Cash received from issuance notes | $ | ||
Repayment of long-term liabilities | |||
Cash received from stock issue | |||
Payment of dividends | |||
Net cash provided by financing activities | |||
Net change in cash | $ | ||
Cash, 1/1/2019 | |||
Cash, 12/31/2019 | $ |
Feedback
2. Compute the following cash-based performance measures:
Use two decimal places for the adequacy ratio. Enter negative values as negative numbers.
Free cash flow | $ |
Adequacy ratio |
Beckwith product company
Statement of cash flow
For the year ended December 31,3019
Cash flow from operating activities:-
Net income during the year 58400
Adjustment to reconcile net income to
Net cash flow from operating activities
Depreciation expense. 20150
Decrease in accounts receivable. 2900
Increase in inventory . -9300
Increase in accounts payable. 2100
Increase in interest payable. 3500
Decrease in wages payble. -900
Net Cash provided by operating activities . 76850
Cash flow from Investing activities;-
Equipment purchase. -103400
Net cash used for Investing activities. -103400
Cash flow from financing activities;-
cash received from issuance of notes. 50000
Repayment of long term liabilities . -35000
Cash received from stock issue . 37800
Payment of dividend. -14300
Net cash provided by financing activities 38500
Net change in cash . 11950
cash 01/01/19 . 25000
cash 31/12/19. 36950
The comparative balance sheets for Beckwith Products Company are presented below. 2019 2018 Assets: Cash $...
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