Question

The following is additional information concerning Sheffield's transactions during the year ended May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $92,300 were purchased by paying $23,300 in cash and issuing 6,900 shares of stock. 4. The other expenses" are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Sheffield issued 2,100 shares of common stock at par value. 7. Cash dividends of $104,700 were declared and paid at the end of the fiscal year.

Answer 1

1.

Sheffield Corp.
Statement of Cash flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash received from customers		$   1,227,600	1243700+58600-74700
Cash payments
To suppliers	$ (678,800)		717400+114900-122000+219900-251400
To employees	$ (278,700)		253800+72100-47200
For interest expenses	$   (72,300)		74300+25200-27200
For other expenses	$   (10,100)		8100+9000-7000
For income tax	$   (42,600)
		$ (1,082,500)
Net cash provided by operating activities		$       145,100
Cash flows from investing activities
Purchase of plant assets	$   (23,300)
Net cash used by investing activities		$       (23,300)
Cash flows from financing activities
Cash paid for dividends	$ (104,700)
Cash received from issuance of common stock	$      21,000
Cash paid to retire bonds	$   (30,000)
Net cash used by financing activities		$     (113,700)
Net Increase in cash and cash equivalents		$            8,100
Cash and cash equivalents at beginning of period		$         20,000
Cash and cash equivalents at end of period		$         28,100
Non cash investing and financing activities
Issued stock for purchase of plant assets		$         69,000

2.

Sheffield Corp.
Statement of Cash flows (Partial)
For the Year Ended December 31, 2017
Cash flows from operating activities
Net Income		$       122,300
Adjustments to reconcile net income to ;
Depreciation expense	$      25,200
Increase in accounts receivable	$   (16,100)
Decrease in inventory	$      31,500
Increase in prepaid expense	$      (2,000)
Increase accounts payable	$        7,100
Decrease in salaries and wages payable	$   (24,900)
Increase in interest payable	$        2,000
		$         22,800
Net cash provided by operating activities		$       145,100

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