Question

Use the following balance sheets and income statement to answer QS 12-11 through QS 12-16. aS 12-11 CRUZ,ING Comparative Balance Sheets Deeember 31,2015 Indirect: Computing cash from operations P2 2015 2014 Assets sh...$ 94,800 24,000 1,000 51,000 85800 95800 0 200 Total current assets... 227,000 175,000 101,000 119,000 t repaid expenses $319000 5265000 CRUZ, INC Inceme Statement Uabilities and Equity Acconcs Payable Wges payable For Year Ended December 31,2015 15,000 21,000 ,0005,000 488,000 314000 74000 Toral current labiacles... Notes payable (ongeerm) ....25,400 28600 22 Grots prolfte... opentingexpenses 322_а Depredadon expense ถ7600 Other oxperse....83,100 124700 47300 Equity 7,300 Toal labilileles and equiry.. . Net Inciome se the indirect method to prepare the cash provided or usod from operating activities seetion oaly of the xtement of cash flows for this company QS 12-12 Refet to the data in QS 12-11. Computing cash from Purniture costing $55,000 is sold at its book value is 2015. Acquisidions of furniture total $45,000 asset sales on which no deprociation is pecessary becanse it is aoquired at year-end. What is the cash inflow rel to the sale of furniture? P3 Refer to the data in QS 12-11. 1-Assume that all common stock is laned for cash, what mount ofcash dividends is paiddaeg 2015? 2. Assume that no addistiomnal noes payable aure issued in 2015. What cash amount is paid to rdace QS 12-13 computing financing cash outflows P3 notes payable balanee in 20152

Answer 1

1)

Cash flows from operating activities
Net income	$ 30,000.00
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense	$ 37,600.00
Changes in current operating assets and liabilities
Decrease in accounts receivable	$ 10,000.00
Decrease in inventory	$ 10,000.00
Increase in prepaid expenses	$ (1,200.00)
Decrease in accounts payable	$ (6,000.00)
Increase in wages payable	$   4,000.00
Decrease in income taxes payable	$ (1,200.00)
Net cash provided by operating activities		$ 54,400.00

2)

Opening Balance of Furniture	$ 110,000.00
New Acquisition	$    45,000.00
Closing Balance of Furniture	$ (92,000.00)
Cash inflow from the Sale of Furniture	$    63,000.00

3)

i)

Opening Balance of Retained Earnings	$      8,400.00
Net income	$    30,000.00
Closing Balance of Retained Earnings	$ (35,600.00)
Cash Dividend Paid	$      2,800.00

ii)

Opening Balance of Notes Payable	$    69,000.00
Closing Balance of Notes Payable	$ (29,000.00)
Amount Paid for Notes Payable	$    40,000.00