Question

Some recent financial statements for Smolira Golf Corp. follow. Assets 2017 2018 Current assets Cash Accounts receivable Inventory Total $ 34,685 17.951 3,700 $ 42,732 16.425 24,874 SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 38,112 Accounts payable $ 37,092 28,036 Notes payable 19.308 42,752 Other 20,134 $ 108,900 Total $ 76,534 Long-term debt $ 116.500 Owners' equity Common stock and paid-in surplus $ 55,300 Accumulated retained earnings 272,552 $ 56,336 $ 84,031 $ 179,379 $ 55,300 310,273 Fixed assets Net plant and equipment $464,550 $520,083 Total $327852 $365,573 Total assets $520,886 $628,983 Total liabilities and owners' equity $520,886 $628,983 $507,954 360,378 44,838 SMOLIRA GOLF CORP. 2018 Income Statement Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net income $ 102,738 19,983 $ 82.755 19,034 $ 63,721 Dividends Retained earnings $26,000 37,721

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

B 1 Answer 2 34685 63721 44838 -10085 -39052 5640 4740 69802 3 SMOLIRA GOLF CORP. 4 Statement of cash flows 5 For 2018 6 Cash Beginning of the Year 7 Operating activities 8 Net income 9 Depreciation expense 10 Increase in account receivable (28036-17951) 11 Increase in inventory (42752-3700) 12 Increase in account Payable (42732-37092) 13 Increase in other liabilities (24874-20134) 14 15 Net cash inflow from operating activities 16 Investing activities 17 Cash paid for purchase of equipment (520083-464550+44838) 18 19 Net cash from investing activities 20 Financing activities 21 cash paid for dividend 22 cash received from long term debt (179379-116500) 23 cash paid for note payable (19308-16425) 24 25 Net cash from Financing activities 26 Net decrease in cash flow from all activities 27 Cash, end of year 28 -100371 -100371 -26000 62879 -2883 33996 3427 38112