Question

X Data Table November 30, 2018 2017 16,500 $ Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income tax payable 14,100 63,900 13,600 17,000 21,900 60,500 2,800 55,300 $ 57,800 $ 57,000 9,000 37,000 10,100

Answer 1

$ $ 54000 3000 Mayner Movie Theatre Company Cash Flow Statement Year ended November 30, 2018 Account Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net cash provided by(used for) operatng activities Amortization expense Depreciation Expenses Decrease in Account Receivable 21900-14100 Increase in Inventory 60500-63900 Increase in Prepaid expense 2800-13600 Increase in account Payable 57800-55300 Increase in Accrued liablilty 57000-37000 Decrease in Income Tax Payable 9000-10100 Total Adjustments Net Cash provided by Operating Activities 15500 7800 -3400 - 10800 2500 20000 -1100 33500 87500

  

Cash flows from Investing Activities Cash Purchase of Equipment Sale of long Term Investment Cash Purchase of Building Net Cash used for Investing Activities -50000 13000 -67000) - 104000 Cash flows from Financing Activities Payment of cash Dividend Issuance of common stock for cash Issuance of long term note payable for cash Net Cash provided from financing Activities Net Increase in Cash -34000 24000 26000 16000 -500 Non cash investing and financing activities Acquisition of land by issuance of notes payable Stock dividend 118000 14000 132000

2 Mayner Movie Theatre Company cash flows look negative, Operating activities and financing activities are the main source of cash Mayner Movie Theatre Company provides negative cash flows from investing activities due to purchase of equipment and building Mayner Movie Theatre Company generate positive cash flows from Financing activities by issue of common stock and long term notes. The company has enough cash to pay dividend in addition to stock dividend.