Question

*Problem 23-6 Comparative balance sheet accounts of Flint Inc. are presented below FLINT INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts Cash Accounts Receivable Inventory Equity investments Machinery Buildings Land 2017 2016 $34,000 60,300 23,800 38,100 19,000 56,400 7,600 $269,000$239,200 $42,400 69,800 29,700 22,300 29,700 67,500 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,300 9,100 24,800 2,600 30,700 125,000 43,200 $269,000$239,200 $2,200 5,600 13,500 35,100 3,300 21,000 150,000 38,300

Answer 1

Net cash flow from operating activities: 43050 Cash recei Sales revenue less: bed debts expense less: increase in accounts receivable (S 69800 - $2 s from customers 539900 -4890 8800 $60300- $1500)] 526210 cash paid for merchandise: cost of Add: incresase in inventory ($ 29700 $23800) Less: increase in accounts payable ($ 35100 $ 24800) 5900 10300 376000 cash paid for ope cash operating expenses ($121200 $ 8450 $4890 Less: increase in accired liabilities($3300-$2600) rating expense: 107860 700 107160 43050 Net cash flow from operatin g activities FLINT INC. Statement of cash flows For the year ended december 31, 2017 Indirect Method Cash flow from op Net income Adjustments to reconcile net income to Net cash flow from operations: De Loss of sales on machine Gain on sale of investment Increse in accounts receivable Increase in invento increase in accounts pavable Increase in accured payable erating activities 41300 ation expenses 8450 800 3800 8800 5900 10300 700 1750 net cash flow from operating activities 43050 Cash flow from investing activities sales proceed from machin Purchase of machinery $ 29700 ($19000 $3700)] Purchase of buildings ($67500 $56400 Sales proceeds from equity investment 2150 14400 11100 urchase of equity investments S 22300- ($38100 Net cash flow from investing activitie $24700)] 8900 3750 cash flow from financing activities ent of long term notes payable ($ 30700 $21000 9700 21200 t of cash dividend net cash flow from financing activities 30900 Net increse (decrease) in cash cash balance at beginning of year cash balance at end of year 8400 42400 Note: Stock dividend is a non cash activity and hence not included in the cash flow statement.