Question

Problem 14-11 Missing Data; Statement of Cash Flows (LO14-1, LO14-2] Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Cash Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Debits > Credits > Credits by: Debits by: $ 51,700 170,200 $ 83,300 4,000 100,000 91,000 343,000 65,700 49,200 5,500 9,600 410,000 129,000 76,600 $ 794,400 $794,400 The following additional information is available about last year's activities: a. Net income for the year was $_? b. The company sold equipment during the year for $35,900. The equipment originally cost $160,000 and it had $125,400 in accumulated depreciation at the time of sale. C. Cash dividends of $10,600 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning Ending $2,853,000 $3,196,000 $ 991,400 $1,057,100

Answer 1

Answer:

Yoric Company
Statement of Cash Flows
for the year ended December 31
Cash flows from operating activities
Net income (Loss)		87200	76600+10600
Adjustments to reconcile net income to net cash flow from operating activity:
Depreciation Expenses	191100
Gain on sale of equipment	-1300
Changes in current operating assets and liabilities
Increase in Accounts receivable	-170200
Decrease in Inventories	83300
Increase in Prepaid Expenses	4000
Increase in Accounts Payable	49200
Increase in Income taxes payable	9600
Decrease in Accrued liabilities	-5500
		160200
Net cash flow from operatiing activities		247400
Cash flows from investing activities
Sale of Equipment	35900
Long-term loans to subsidiaries	100000
Long-term investments	-91000
Purchase of Equipment	-503000
Net cash flow used for investing activities		-458100
Cash flows from financing activities
Redemption of Common Stock	-129000
Issuance of Bonds Payable	410000
Payment of Cash Dividend	-10600
Net cash flow used for financing activities		270400
Increase in cash		125400
Cash at the beginning of the year		109300
Cash at the end of the year		234700
Working
Purchase of Equipment
Ending Cost of Equipment	3196000
Add: Cost of Equipment Sold	160000
Less :Beginning Cost of Equipment	2853000
Purchase of Equipment	503000
Depreciation Expenses
Ending Accumulated Depreciation	1057100
Add: Accumulated Depreciation of Equipment sold	125400
Less : Beginning Accumulated Depreciation	991400
Depreciation Expenses	191100
Gain on Sale of Equipment
Cost of Equipment Sold	160000
Less : Accumulated Depreciation of Equipment sold	125400
Book Value of Equipment Sold	34600
Sale of Equipment	35900
Less: Book Value of Equipment Sold	34600
Gain on sale of equipment	1300