Question

The comparative balance sheets of Skysong Inc. at the beginning and the end of the year 2017 are as follows. SKYSONG INC. BALANCE SHEETS Dec. 31, 2017an. 1, 2017 Inc./Dec. Assets Cash $ 47,080 $ 15,080 $32,000 Inc. Accounts receivable 95,260 90,180 5,080 Inc. Equipment 43,260 24,180 19,080 Inc. Less: Accumulated Depreciation-Equipment 21,260 11,000 10,260 Inc. Total $164,340 $118,440 Liabilities and Stockholders’ Equity Accounts payable $ 24,260 $ 17,180 7,080 Inc. Common stock 102,080 82,180 19,900 Inc. Retained earnings 38,000 19,080 18,920 Inc. Total $164,340 $118,440 Net income of $48,260 was reported, and dividends of $29,340 were paid in 2017. New equipment was purchased and none was sold.prepare a statement of cash flows for the year 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

SKYSONG INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from Operating Activities Net Income Adjustments to reconcile net income to Net cash provided by Operating activities Depreciation Increase in Accounts Receivable Increase in Accounts Payable Net cash provided by Operating Activities Cash flows from Investing Activities Purchase of Equipment Net cash used by Investing activities Cash flows from Financing Activities Cash Dividend Issue of Common Stock Net Cash used by Financing Activities Net Increase in Cash Cash, Jan. 1, 2017 Cash, Dec. 31, 2017 48260 10260 5080 7080 12260 60520 -19080 19080 29340 19900 9440 32000 15080 47080