Question

Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 44,290 27,900 30,900 112,100 (36,600) $ 18,500 30,000 37,000 103,000 (30,500) Total Assets $178,590 $158,000 $ 25,600 790 Accounts Payable Salaries and Wages Note Payable (long-term) Common Stock $ 22,500 1,000 49,000 61,000 24,500 hayable 38,000 81,500 32,700 Retained Earnings Total Liabilities and Stockholders' Equity $178,590 $158,000 Income Statement (current year) Sales Revenue $101,000 Cost of Goods Sold 61,500 Other Expenses 27,400 $ 12,100 Net Income

Answer 1

Cash Flow Statement
Particulars	Amount	Amount
Net Income		$   12,100.00
Adjustments to reconcile net income to:
Net cash provided by operating activities
Depreciation	$      6,100.00
Decrease in Accounts Receivable	$      2,100.00
Decrease in Inventory	$      6,100.00
Increase in Accounts Payable	$      3,100.00
Decrease in Salaries and Wages Payable	$       (210.00)
Net Cash Generated		$   17,190.00
Net cash provided by operating activities	(A)	$   29,290.00
Cash Flows from Investing Activities
Purchase of Equipment	$   (9,100.00)
Net cash provided by investing activities	(B)	$   (9,100.00)
Cash Flows from Financing Activities
Issue of common stock	$   20,500.00
Repayment of Notes Payable	$ (11,000.00)
Cash dividend paid	$   (3,900.00)
Net cash provided by Financing activities	(C')	$      5,600.00
Net increase/decrease in cash	(A+B+C)	$   25,790.00
Add:Opening cash balance		$   18,500.00
Closing cash balance		$   44,290.00