Question

The comparative Balance Sheets and the Income statement for the Marine Corporation are as

follow:

Marine Corporation

Assets

Cash

Marketable Securities Accounts Receivable

Inventories

Investments

Total current assets

Plant and Equipment

Less Accumulated

Amortization

Net plant and Equipment

Total Assets

Balance Sheet

2019

$45,000

175,000

240,000

230,000

70,000

$760,000

1300000

450,000

$850,000

1610000

LIABILITIES AND SHAREHOLDERS' EQUITY

$110,000

65,000

30,000

5,000

400 000

2020

$50,000

160,000

275,000

55,000

$760,000

1550000

$950,000

1710000

Accounts payable

Notes payable

Accrued Expenses

Income Taxes Payable

Bonds Payable (2016)

Common Stock (100,000 shares)

Retained Earnings

$85,000

10,000

5,000

10.000

200,090

500 000

to search

Answer 1

Marine Corporation
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash Flow from Operating Activities
Net income	600,000
Adjustments to reconcile net income to net cash
flows from operating activities:
Amortization Expense	150,000
Decrease in accounts receivable	20,000
Increase in inventories	(45,000)
Decrease in accounts payable	(25,000)
Decrease in notes payable	(55,000)
Decrease in accrued expenses	(25,000)
Increase in income taxes payable	5,000
Net cash flows from operations		625,000
Cash Flow from Investing Activities
Purchase of plant & equipment	(250,000)
Sale of marketable securities	15,000
Sale of investment	15,000
Net cash flows from investing activities		(220,000)
Cash Flow from Financing Activities
Proceeds from issuance of bonds payable	100,000
Payment of cash dividends	(500,000)
Net cash flows from financing activities		(400,000)
Net increase (decrease) in cash		5,000
Beginning cash balance		45,000
Ending cash balance		50,000