Question

The comparative balance sheets and income statement of Piura Manufacturing follow. Piura Manufacturing Comparative Balance Sheets For the Years Ended June 30, 20X1 and 20X2 1 20X1 20X2 2 Assets: 3 Cash $72,000.00 $146,400.00 4 Accounts receivable 44,000.00 48,000.00 5 Inventory 64,000.00 44,000.00 6 Plant and equipment 104,000.00 112,000.00 7 Accumulated depreciation (52,000.00) (48,000.00) 8 Land 20,000.00 20,000.00 9 Total assets $252,000.00 $322,400.00 10 Liabilities and equity: 11 Accounts payable $32,000.00 $48,000.00 12 Wages payable 4,000.00 2,400.00 13 Bonds payable 24,000.00 16,000.00 14 Preferred stock (no par) 4,000.00 12,000.00 15 Common stock 30,000.00 36,000.00 16 Paid-in capital in excess of par 50,000.00 76,000.00 17 Retained earnings 108,000.00 132,000.00 18 Total liabilities and equity $252,000.00 $322,400.00 Piura Manufacturing Income Statement For the Year Ended June 30, 20X2 1 Sales $320,000.00 2 Cost of goods sold (200,000.00) 3 Gross margin $120,000.00 4 Operating expenses (88,000.00) 5 Net income $32,000.00 Additional transactions for 20X2 were as follows: A. Cash dividends of $8,000 were paid. B. Equipment was acquired by issuing common stock with a par value of $6,000. The fair market value of the equipment is $32,000. C. Equipment with a book value of $12,000 was sold for $6,000. The original cost of the equipment was $24,000. The loss is included in operating expenses. D. Two thousand shares of preferred stock were sold for $4 per share.

Need help with #3 question:

3. Prepare a statement of cash flows using a worksheet similar to the one shown in Example 14.8 (p. 804). (Note: Begin by entering the applicable income statement amounts. Use a minus sign to indicate a negative amount. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Worksheet: Piura Manufacturing

For the Year Ended June 30, 20X2

1		Beginning	Transaction	Transaction	Ending
2		Balance	Debit	Credit	Balance
3	Assets:
4
5
6
7
8
9
10
11	Liabilities and equity:
12
13
14
15
16
17
18
19
20	Cash flows from operating activities:
21
22
23
24
25
26
27
28	Cash flows from investing activities:
29
30	Cash flows from financing activities:
31
32
33
34
35	Noncash investing and financing activities:
36

Piura Manufacturing

Statement of Cash Flows

For the Year Ended June 30, 20X2

1	Cash flows from operating activities:
2
3	Add (deduct) adjusting items:
4
5
6
7
8
9
10
11	Cash flows from investing activities:
12
13	Cash flows from financing activities:
14
15
16
17
18
19	Noncash investing and financing activities:
20

Answer 1

	Beginning Balance	Debit	Credit	Ending Balance
Balance Sheet-Debit
Cash	$        72,000.00	$         74,400.00		$          1,46,400.00
Accounts Receivable	$        44,000.00	$           4,000.00		$             48,000.00
Inventory	$        64,000.00		$          20,000.00	$             44,000.00
Equipment	$     1,04,000.00	$         32,000.00	$          24,000.00	$          1,12,000.00
Land	$        20,000.00			$             20,000.00
	$     3,04,000.00			$          3,70,400.00
Balance sheet-Credit
Accumulated Depreciation	$        52,000.00	$         12,000.00	$             8,000.00	$             48,000.00
Accounts Payable	$        32,000.00		$          16,000.00	$             48,000.00
Wages Payable	$           4,000.00	$           1,600.00		$               2,400.00
Bonds Payable	$        24,000.00	$           8,000.00		$             16,000.00
Preferred Stock	$           4,000.00		$             8,000.00	$             12,000.00
Common Stock	$        30,000.00		$             6,000.00	$             36,000.00
Paid in capital in excess of par	$        50,000.00		$          26,000.00	$             76,000.00
Retained Earnings	$     1,08,000.00	$           8,000.00	$          32,000.00	$          1,32,000.00
	$     3,04,000.00			$          3,70,400.00

Cash Flow Statement
Indirect Method
Cash flow from Operating Activities
Net Income		$         32,000.00
Adjustments
Depreciation	$           8,000.00
Loss on sale of Equipment	$           6,000.00
Change In current assets & Liabilities
Increase in Accounts Receivable	$         -4,000.00
Decrease in inventories	$        20,000.00
Increase in Accounts payable	$        16,000.00
Decrease in Wages payable	$         -1,600.00
Total Adjustments		$         44,400.00
Cash from operating activities			$          76,400.00
Cash flow from Investing Activities
Sale of Equipment		$           6,000.00
Cash paid for Purchase of Equipment		$                       -
Cash used in investing activities			$            6,000.00
Cash flow from Financing Activities
Issue of Preferred stock		$           8,000.00
Repayment of Bonds Payable		$         -8,000.00
Dividend Paid		$         -8,000.00
Cash from financing activities			$           -8,000.00
Net Increase in cash			$          74,400.00
Opening Balance of Cash			$          72,000.00
Closing Balance of Cash			$       1,46,400.00
Non Cash Investing and Financing Activities
Purchase of Equipment by issuing common stock			$          32,000.00