Question

Sike Corp balance sheet and income statement appear below: TAKE HOME PROBLEM. TO BE TURNED IN AT THE BEGINNING OF CLASS OF EXAM #1 Comparative Balance Sheet .Net Loss for the period was S30, 12/31/2015 12/31/2016. Assets Cash Accounts Receivable Inventory PP&E Accum Depr Total Assets The company sold equipment for S10 that was originally purchased for $20 100 $ 47 S3540The sold asset had accumulated 8453 depreciation of S10. S 510 87The company paid a cash dividend (340) $(360) $ 389 $367 during the year and did not issue any bonds payable or repurchase any of its own common stock. Liabilities &Equity Accounts Payable Accrued Liabilities Income Tax Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 26 $15 20 60 36 S 160 S 120 50 $ 120 62 79 389S 36 Required: Construct, in good form, the company's Statement of Cash Flows for the period, using the indirect method. (15pts)

Answer 1

Description	Amount	Amount
Cash flow from operating activity		73
Net Income before tax	(30)
Add non cash expense
Depreciation	30
Tax provision	24
Adjustment for change in working capital
Change in AR	(5)
Change in inventory	31
Change in AP	18
Change in Accrued Liability	5
Cash flow from Financing activity		(39)
Issue of new shares (62-50)	12
Redemption of bonds (160-120)	(40)
Dividends paid	(11)
Cash flow from Investing activity		(87)
Purchase of PPE	(97)
Sale of PPE	10
Total of above		(53)
Opening cash balance		100
Closing Cash balance		47
	In BS	47
	Variance	-
Opening PPE	510
Less Sold	(20)
Less Closing PPE	(587)
Purchase of PPE	(97)
Opening Accumulated Dep	340
Dep reversed for sold PPE	(10)
total	330
Less Closing accumulated dep	360
Year Depreciatin	30
Opening profits	120
Profit for the year	(30)
total	90
Less Closing profits	(79)
Dividend distributed	11
Opening tax payable	36
Tax for the year	24
total	60
Less Closing tax payable	(60)
Taxes Paid	-