Question

Supplements Plus, Inc. Income Statement Year Ended September 30, 2018 Net Sales Revenue $ 230,000 Cost of Goods Sold 93,000 Gross Profit 137,000 Operating Expenses: Salaries Expense $ 57,000 Depreciation Expense Plant Assets 28,000 Total Operating Expenses 85,000 Net Income Before Income Taxes 52,000 Income Tax Expense 8,000 $ Net Income 44,000

Answer 1

B A с 1 Supplements Plus, Inc. 2 Statement of Cash Flows 3 Year Ended September 30, 2018 4 Cash flows from operating activities: 5 Net income $ 44,000 6 Adjustments to reconcile net income to net cash 7 provided by (used for) operating activities: 8 Depreciation expense-Plant assets $ 28,000 9 Decrease in accounts receivable $ 12,000 10 Increase in merchandise inventory $ -7,000 11 Increase in accounts payable $ 18,000 12 Decrease in accrued liabilities $ -12,000$ 39,000 13 Net cash provided by (used for) operating activities $ 83,000 14 Cash flows from investing activities: 15 Acquisition of plant assets $ -105,000 16 Proceeds from sale of land $ 25,000 17 Net cash provided by (used for) investing activities $ -80,000 18 Cash flows from financing activities: 19 Proceeds from issuance of common stock $ 33,000 20 Payment of long term note payable $ -12,000 21 Payment of dividends $ -11,000 22 Net cash provided by (used for) financing activities $ 10,000 23 Net increase (decrease) in cash $ 13,000 24 Cash balance, September 30, 2017 $ 23,000 25 Cash balance, September 30, 2018 $ 36,000 26 Non-cash investing and financing activities: 27 Acquisition of plant assets by issuing a note payable $ 13,000 28 Total Non-cash Investing and Financing Activities $ 13,000

B A с 1 Supplements Plus, Inc. 2 Statement of Cash Flows 3 Year Ended September 30, 2018 4 Cash flows from operating activities: 5 Net income 44000 6 Adjustments to reconcile net income to net cash 7 provided by (used for) operating activities: 8 Depreciation expense-Plant assets 28000 9 Decrease in accounts receivable =59000-47000 10 Increase in merchandise inventory =92000-99000 11 Increase in accounts payable =38000-20000 12 Decrease in accrued liabilities =14000-26000 =SUM(B8:B12) 13 Net cash provided by (used for) operating activities =+C5+C12 14 Cash flows from investing activities: 15 Acquisition of plant assets - 105000 16 Proceeds from sale of land 25000 17 Net cash provided by (used for) investing activities =+B15+B16 18 Cash flows from financing activities: 19 Proceeds from issuance of common stock 33000 20 Payment of long term note payable |-12000 21 Payment of dividends - 11000 22 Net cash provided by (used for) financing activities =+B19+B20+B21 23 Net increase (decrease) in cash =+C13+C17+C22 24 Cash balance, September 30, 2017 23000 25 Cash balance, September 30, 2018 =+C23+C24 26 Non-cash investing and financing activities: 27 Acquisition of plant assets by issuing a note payable 13000 28 Total Non-cash Investing and Financing Activities =+C27