Question

Question 5 (20 marks) 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 2018 $45,000 175,000 240,000 230,000 70,000 $760,000 1,300,000 450,000 2019 $50,000 160,000 220,000 275,000 55,000 $760,000 1,550,000 600,000 $850,000 1,610,000 $950,000 1,710,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $110,000 Notes payable 65,000 Accrued Expenses 30,000 Income Taxes Payable 5,000 Dan Daxilla016 $85,000 10,000 5,000 10,000 Annon © (አቤ የነቤ D Focus arch o

Answer 1

Cash flow from Operating activities	Amount(in $)
Net Income	400,000
Add:Amortization expenses	150,000
Cash flow before adjustment of working capital items	550,000
Add:Decrease in Marketable Securities	15,000
Add:Decrease in Accounts Receivable	20,000
Less:Increase in Inventory	(45,000)
Add:Decrease in Investments(Current)	15,000
Less:Decrease in accounts payable	(25,000)
Less:Decrease in Notes payable	(55,000)
Less:Decrease in Accrued expense payable	(25,000)
Add:Increase in Income taxes payable	5,000
Net Cash flow from Operating activities(A)	455,000
Cash flow from Investing activities
Purchase of Plant and Equipment($850,000+$150,000-$1,550,000)	(550,000)
Cash flow from Investing activities(B)	(550,000)
Cash flow from Financing activities
Issue of Bond	100,000
Cash flow from Financing activities(C)	$100,000
Net Change in cash(A+B+C)	$5,000
Cash at Beginning of year	$45,000
Cash at end of year	$50,000