Question

The comparative balance sheets for 2018 and 2017 and the statement of Income for 2018 are given below for Wright Company. Additional Information from Wright's accounting records Is provided also. WRIGHT COMPANY Comparative Balance Sheets Decenber 31, 2018 and 2017 (S in eees) 2018 2017 Assets Cash $ 114 $ 100 142 Accounts receivable Short-term investment Inventory Land Buildings and equipnent Less: Accumulated depreciation 145 16 140 50 145 106 130 710 540 (199) (145) $1,068 926 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity %24 42 49 7. 34 308 240 Connon stock 405 340 Paid-in capital-excess of par Retained earnings 190 170 104 69 $1,068 $ 926 WRIGHT COMPANY Income Statement For Year Ended Decenber 31, 2018 (S in eees) Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense $ 600 $ 270 66 54 17 4. 89 500 $ 100 Net incone Additional information from the accounting records

Answer 1

603 WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2018 (S in 000s) Cash flows from operating activities Cash Inflows Cash Receipts from Customers S Cash Outflows Cash paid to suppliers Cash paid to employees Purchase of short term instrumnets Interest paid Income taxes paid Net cash flow from operating activities Cash flows from investing activities Equipment purchased Sale of land Net cash from investing activities (282) (68) (34) (16) (93) $ 110 (170) 20 S (150)

S S $ Cash flows from financing activities Issuance of Common Stock Notes paid Sale of bonds Payment of Dividend Net cash flow from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 85 (34) 68 (65) 54 S S S 14 100 114 Working Notes 1 Cash received from customers Opening balance of Accounts Receivables Add: Sales Less: Closing balance of accounts receivables S $ S $ 145 600 (142) 603 2 Cash paid to suppliers Cost of Goods sold Add: Opening Balance of Accounts payable Closing Balance of Inventory mul ownload S 270 49 145 464 42 140 282 Less: Closing balance of accounts payable opening balance of inventory S S S

3 cash paid to employees Opening balance of salaries payable Salaries during the year 7 66 73 5 68 Less: closing balance of salaries payable S 4 Interest Expenses Opening balance of Interest payable add: Current year interest expenses 17 23 Less: closing balance of Interest Expenses S 16 5 cash paid to Income Tax Opening balance of Income tax add: Curent year tax Less: Closing balance of income tax $ 11 89 7 93 S