Question

A. Ev styles e Find 03. a) Sleep Country began 2019 with accounts receivable, inventory, and prepaid expenses totalling $65,000. At the end of the year, Sleep Country had a total of $78,000 for these current assets. At the beginning of 2019, Sleep Country owed current liabilities of $12,000, and at year end, current liabilities totalled $40,000. Net income for the year was $80,000. Included in net income were a $4,000 gain on the sale of land and depreciation expense of $9,000 Show how Sleep Country should report cash flows from operating activities for 2014. Sleep Country uses the indirect method. b) Identify the effects both the direction and the dollar amount of the following assumed transactions on the total shareholders' equity of a large corporation. Each transaction 15 independent a) Declaration of cash dividends of $80 million b) Payment of the cash dividend declared c) 10% stock dividend Before the dividend, 69 million common shares were outstanding: d) the market price was $7.625 at the time of the dividend. e) A 50% stock dividend. Before the dividend, 69 million common shares were outstanding f) the market price was $13.75 at the time of the dividend g) Sale of 600 common shares for $5.00 per share h) A 3-for I stock split. Prior to the split, 69 million common shares were outstanding

Answer 1

Question:3

Requirement:A

Sleep Country
Statement of Cash Flows
For the Year Ended December 31
Cash flows from operating activities:
Net Income	$         80,000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	$           9,000
Gain on sale of land	$         (4,000)
Changes in current operating assets and liabilities
Increase in accounts receivable, inventory and prepaid expenses [78000-65000]	$       (13,000)
Decrease in current liabilities [40000-42000]	$         (2,000)
Net cash provided by operating activities[A]		$          70,000