Question

Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017. Download the Excel spreadsheet Booster Company A1. Required: 1. Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2018. 2. In the Excel Worksheet column named Worksheet Entries', show under Debit and Credit, the amounts that would be used in preparation of the statement of cash flows. 3. Prepare the Booster Company's statement of cash flows for the year ended June 30, 2018. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about non-cash financing and investing activities. Submit a well-formatted electronic file, with your last name as the file name. For example, Lastname_PortfolioProject.xls.

Answer 1

Student - Please see below complete calculation details calculation . Due to space constrain , not able to provide all workings like Loss on sale of asset ( $ 1500 ) .. I will posted separately if space allow . please go through below working and any doubt , please drop me message .  

		Cash flow Work Sheet
		Balances		Change	Worksheet
		30th June '16-Amnt$	30th June '17-Amnt$	( Increase / ( decrease)-Amnt $	Dr $	Cr $
Debits
Cash		3,61,700	8,80,550	5,18,850	5,18,850
Non Cash Account
Account Receivable		1,00,000	1,25,000	25,000	30,000	5,000	( as per Q)- $ 5k acount receivable Write off as uncollectable
Marketable Securities( At cost)		11,700	13,000	1,300	1,300
Allowance for change in Value		1,500	1,800	300	300
Construction in progress		1,68,750	4,05,000	2,36,250	2,36,250
Prepaid Expenses		45,000	10,000	-35,000		35,000
Investment ( Long term)			13,500	13,500	15,500	2,000
Lease Equipment			20,000	20,000	20,000
Building		30,000		-30,000		30,000
Deferred Tax Asset		5,375	2,200	-3,175		3,175
Land		10,500	10,500
Discount on Bond Payable			1,305	1,305	1,350	45
Credit
Allowance for doubtful debt		6,000	4,500	-1,500	1,500
Account Payable		87,500	2,10,000	1,22,500		1,22,500
Deferred Tax Liability		1,000	3,300	2,300		2,300
Income Tax payable		3,500	9,000	5,500		5,500
Note Payable ( Long term)		3,500		-3,500	3,500
Accumulated depreciaiton - Building		2,500		-2,500	2,500
Accumulated depreciaiton - Leased Asset			3,000	3,000		3,000
Lease Obligation			18,000	18,000		18,000
Interest Payable - Lease Obligation			1,800	1,800		1,800
Interest Payable - Bonds			1,800	1,800		1,800
Bond Payable			45,000	45,000		45,000
Billing on Construction in process		1,50,000	3,25,000	1,75,000		1,75,000
Pension Liability		1,50,000	4,00,000	2,50,000	1,00,000	3,50,000
Convertible preference Stock-$100 par		9,000		-9,000	9,000
Commom Stock -$10 par		14,000	24,500	10,500		10,500
Additional Paid up capital		8,700	13,700	5,000		5,000
Unreaslized Increase in value of securities		1,500	1,800	300		300
Retained Earnings		2,97,325	4,21,455	1,24,130	650	1,24,780

Cash Flow Statement	Amnt($)
Operation Activities
Net Income	1,24,780
Non Cash item - Adjustment
Depreciation Expenses	3,000
Loss on Sale of Building	1,500
Original cost
Less - Deprecition
Net Cost to sales
Sale Proceeds
Loss on Sale of Building
Amortization Discount onDebt	45
Bad Debt(net of bad debts Write Back)	3,500
( Write off $ 5000- Write back as above $1500)
Gain on converion of pref Stock	-4,000
Gain on repayment of Note Payable	-1,000
Share income/ Dividend from Subsidiary	-4,000
Provision for Pension	3,50,000
Change in Working Capital
Increase in Account receivable	-30,000
Increase in Inventory( adjust billing progress)	-61,250
Decrease in prepaid expenses	35,000
Increase in Income Tax Payable ( including deferred Tax	10,975
Increase in Account payable	1,22,500
Increase in Interest Payable	3,600
Decrease in pensionLiability	-1,00,000
Net Cash flow from Operating Activity	4,54,650
Investment Activities
Marketable Security	-1,300
Investment in Long Term ( As per Question -Ricochet purchased an investment -$9500)	-9,500
Lease Equipment ( Net of Lease obligation)	-2,000
Sale of Building	26,000
Net Cash flow from Investment Activity	13,200
Financing Activities
Common Stock issued ( including Additional)	8,000
Bond Payable	43,650
Dividend Paid	-650
Net Cash flow from Financial   Activity	51,000
Net change in Cash + Cash Equivalent	5,18,850
Opening Cash Balance	3,61,700
Closing Balance Cash + cash Equivalent	8,80,550

	Debit $	Credit $
Net Income	1,24,780
Depreciation Expenses	3,000
Loss on Sale of Building	1,500	(
Original cost
Less - Deprecition
Net Cost to sales
Sale Proceeds
Loss on Sale of Building
Amortization Discount onDebt	45
Bad Debt(net of bad debts Write Back)	3,500
( Write off $ 5000- Write back as above $1500)
Gain on converion of pref Stock		4,000
Gain on repayment of Note Payable		1,000
Share income/ Dividend from Subsidiary		4,000
Provision for Pension	3,50,000
Increase in Account receivable		30,000
Increase in Inventory( adjust billing progress)		61,250
Decrease in prepaid expenses	35,000
Increase in Income Tax Payable ( including deferred Tax	10,975
Increase in Account payable	1,22,500
Increase in Interest Payable	3,600
Decrease in pensionLiability		1,00,000
Marketable Security		1,300
Investment in Long Term		9,500
Lease Equipment ( Net of Lease obligation)		2,000
Sale of Building	26,000
Common Stock issued ( including Additional)	8,000
Bond Payable	43,650
Dividend Paid		650
Increase in Cash Balance		5,18,850
Total	7,32,550	7,32,550

Loss on Sale calculation-

Original cost	30000
Less - Depreciation	2500
Net Cost to sales	27500
Sale Proceeds	26000
Loss on Sale of Building	1500

		Balances		Change	Worksheet
		30th June '16-Amnt$	30th June '17-Amnt$	( Increase / ( decrease)-Amnt $	Dr $	Cr $
Account Receivable		1,00,000	1,25,000	25,000	30,000	5,000	( as per Q)- $ 5k acount receivable Write off as uncollectable