Question

Calculator Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec 31, 2093 Dec 31, 2012 2 Assets 3 Cash $625,650.00 $586,340.00 Accounts receivable (net) 228,170.00 208,030.00 5 Inventories 641,480.00 617,130.00 6 Investments 0.00 240,290.00 7 Land 328,170.00 0.00 * Equipment Accumulated depreciation-equipment 706,070.00 552,300.00 10 Total assets (165,580.00) $2,363,960.00 (147,010.00) $2,057,080.00 11 Liabilities and Stockholders' Equity

Answer 1

Answer:

Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3
Cash flows from operating activities:
Net income	$ 199,210
Adjustments to reconcile net income to
net cash flow from operating activities:
Depreciation ($165,580 – $147,010)	18,570
Gain on sale of investments ($240,290 – $280,680)	(40,390)
Changes in current operating assets
and liabilities:
Increase in accounts receivable	(20,140)
Increase in inventories	(24,350)
Increase in accounts payable	19,440
Decrease in accrued expenses payable	(11,030)
Net cash flow from operating activities		$ 141,310
Cash flows from investing activities:
Cash received from sale of investments	$ 280,680
Cash paid for purchase of land	(328,170)
Cash paid for purchase of equipment ($706,070 – $552,300)	(153,770)
Net cash flow used for investing activities		(201,260)
Cash flows from financing activities:
Cash received from sale of common stock ($153,000 – $99,000 ) + ($418,000 – $279,800)	$ 192,200
Cash paid for dividends*	(92,940)
Net cash flow from financing activities		99,260
Change in cash		$ 39,310
Cash at the beginning of the year		586,340
Cash at the end of the year		$ 625,650

* Cash paid for dividends = $96,260 + $19,880 - $23,200 = $92,940.