Question

1st midterm pre exam (1) Design Layout References Mailings Review View Help Search I Cash Flow Statement Below please find the comparative Balance Sheets and Income Statement for Wittige Industries Wittiger Industries Comparative Balance Sheets 12/31/2018 12/31/2017 Cash 58.000 25.000 Accounts Receivable 40,000 45,000 Inventory 51,000 52,000 Prepaid Expenses 18,000 5,000 Investments 19,000 39,000 Property Plant, and Equipment 503,000 458,000 Accumulated Depreciation (204,000) (213,000) Accounts Payable (44,000) (42,000) Accrued Liabilities (8,000) (12,000) Long term Note payable (110,000) 150,000) Common Stock (55,000) (50,000) Retained Earnings (268,000) (257,000) Wittiger Industries Income Statement for the year ended Dec 31, 2019 Sales Gain on Asset Sale Total Revenues 550,000 3,000 553,000 Cost of Goods sold Bad Debt Expense Depreciation Experte Other Operating Expenses 200.000 15.000 23.000 287,000 2,000 527.000 26.000 Total Expenses

Answer 1

Cash Flow
Operating
Net Income	26000	Gain on Sale of Assets	3000
Depreciation	23000	Increase in Prepaid Expenses	13000
Loss on Sale of Investment	2000	Decrease in Accrued Liabilities	4000
Decrease in Account Receivable	5000
Decrease in Inventory	1000	Cash Flow From Operating Activities	39000
Increase in Accounts Payable	2000
	59000		59000
Investing
Sale of Property Plant Equipment	26000	Purchase of Property Plant Equipment	100000
Sale of Investment	18000
Cash Flow From Investing Activities	56000
	100000		100000
Financing
Issue of Common Stock	5000	Payment for Long Term Note	20000
Issue of Long Term Note Payable	80000	Dividend Paid	15000
		Cash Flow From Financing Activity	50000
	85000		85000
Opening Balance	25000
Add: Cash Flow From Operating Activities	39000
Less: Cash Flow From Investing Activities	-56000
Add: Cash Flow From Financing Activities	50000
Closing Balance	58000

Working Note:

Investment Account
To Balance B/d	39000	By Loss on Sale	2000
		By Cash	18000
		By Balance C/d	19000
	39000		39000
Property Plant and Equipment Account
To Balance B/d	458000	By Accumulated Dep.	32000
To Purchase of Property Plant	20000	By Cash	26000
To Gain on Sale	3000	By Balance C/d	423000
	481000		481000
Accumulated Depreciation
To Property Plant and Equipment	32000	By Balance B/d	213000
To Balance C/d	204000	By Depreciation	23000
	236000		236000
Common Stock
		By Balance B/d	50000
To Balance C/d	55000	By Cash	5000
	55000		55000
Long Term Note Payable
To Cash	20000	By Balance B/d	50000
To Balance C/d	110000	By Cash	80000
	130000		130000