Question

Problem 12-11A The comparative balance sheets for Concord Corporation as of December 31 are presented below. Concord Corporation Comparative Balance Sheets December 31 Assets 2019 2018 Cash $57,600 $47,800 Accounts receivable 43,600 64,100 Inventory 151,600 145,800 Prepaid expenses 14,300 21,200 Land 96,300 130,400 Buildings 197,000 197,000 Accumulated depreciation-buildings (55,900) (30,900) Equipment 229,900 156,600 Accumulated depreciation-equipment (43,600) (35,800) Total $690,800 $696,200 Liabilities and Stockholders' Equity Accounts payable $46,100 $39,800 Bonds payable 260,000 290,900 Common stock, $1 par 189,800 158,900 Retained earnings 194,900 206,600 Total $690,800 $696,200 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $6,900. 2. Land was sold for cash at book value. 3. Cash dividends of $56,100 were paid. 4. Net income for 2019 was $44,400. 5. Equipment was purchased for $95,100 cash. In addition, equipment costing $21,800 with a book value of $12,600 was sold for $5,300 cash. 6. Bonds were converted at face value by issuing 30,900 shares of $1 par value common stock.

Answer 1

Cash flow Statement
Cash flows from Operating activities
Net Icnome for the year			44,400
Adjustment required for reconciliation
Depreciation expense			42000
Loss on sale of equipment			7,300
Decrease in Accounts receivable		20,500.00
Increase in Inventory				-5,800
Decrease in Prepaid expense			6900
Increase in Accounts payable			6300
Net cash provided from Operating activities		121600
Cash flows from investing activities
Sale of equipment				5300
Sale of land				34100
Purchase of equipment			-95100
Net cash used in investing activities			-55700
Cash Flows from Financing activities
Dividend paid (206600+44400-194900)		-56100
Net cash used in financing activities			-56100
Net increase in cash					9800
Beginning balance of cash				47800
Ending balance of cash				57600