Question

terprises Inc. at December 31, 2016 and UT LUJI TUWS-iluirect Method The comparative balance sheet of Del Ray Enterprises Inc. at December 2015, is as follows: Dec. 31, 2016 Dec 31, 2015 Assets Cash ........ ........ $ 146,600 $ 179,800 Accounts receivable (net) ........... 224,600 242,000 Merchandise inventory .......... 321,600 299,200 Prepaid expenses ........ 13,400 9,600 Equipment. ............ 655,000 537,000 Accumulated depreciation equipment ........... (170,800) (132,200) Total assets ................... $1,190,400 $1,135,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) ....... $ 250,200 $ 237,600 Mortgage note payable........ 336,000 Common stock, $10 par........ 74,000 24,000 470,000 Paid-in capital: Excess of issue price over par-common stock..... 320,000 396,200 Retained earnings........ 217,800 $1,190,400 $1,135,400 Total liabilities and stockholders' equity.......

Answer 1

$ 332,000 $ 83,400 $ 17,400 $ (22,400) $ (3,800) $ 12,600 Del Ray Enterprises Inc. Statement of Cash Flows For the Year Ended December 31,2016 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash flows from operating activities: Depreciation Changes in Current Operating assets and liabilities Decrease in Accounts receivables Increase in Merchandise Inventories Increase in Prepaid expenses Increase in Accounts payable Net Cash flow from operating activities Cash Flows from Investing Activities Cash paid for purchase of Equipment Net Cash used for Investing activities Cash Flows from Financing Activities Cash paid for dividends Cash paid to retire mortgage note payable Cash received from sale of common stock Net Cash from Financing activities Net Decrease in Cash Cash at the beginning of the year Cash at the end of the year $ 419,200 $(162,800) $(162,800) $(153,600) $(336,000) $ 200,000 $(289,600) $ (33,200) $ 179,800 $ 146,600