Question

Below is the comparative balance sheet for Sarasota Corporation Dec. 31, 2017 Dec. 31, 2016 $16,500 24,800 43,000 $20,800 18,900 45,100 (1,900 ) 2,600 64,800 49,600 73,700 (22,800 ) 46,400 (15,400) 38,700 (20,700) -0 Cash Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Inventory Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Delivery equipment Accumulated depreciation-delivery equipment Patents (1,800 ) 4,100 81,600 49,600 124,700 (30,300) 52,800 (19,100 ) 38,700 (22,200 ) 15,000 $377,400 $299,800 $16,000 5,900 4,700 53,100 62,400 102,600 4,100 51,000 $299,800 $25,800 4,100 3,000 72,200 49,600 140,800 9,900 72,000 $377,400 Accounts payable Short-term notes payable (trade) Accrued payables Mortgage payable Bonds payable Common stock Paid-in capital in excess of par Retained earnings Dividends in the amount of $14,900 were declared and paid in 2017 From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. either in debit or in credit column in Statement of Cash Flows Effects except for totals.) WORKSHEET FOR PREPARATION OF STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 2017 Reconciling Items Balance at Balance at 12/31/16 DebitCredit 12/31/17 4,300$16,500 24,800 43,000 4,100 81,600 49,600 124,700 52,800 38,700 15,000 $450,800 $20,800 18,900 45,100 2,600 64,800 49,600 Cash Short-term investments Accounts receivable Prepaid expenses Inventory 5,900 2,100 1,500 16,800 Buildings Equipment Delivery equipment Patents 73,70051,000 46,400 6,400 38,700 15,000 $360,600 Total debits Credits $16,000 5,900 4,700 1,900 22,800 15,400 20,700 53,100 9,800$25,800 4,100 3,000 1,800 30,300 19,100 22,200 72,200 49,600 38,200 140,800 9,900 72,000 $450,800 Accounts payable Notes payable Accrued liabilities Allowance for doubtful accounts Accumulated Depreciation-Building Accumulated Depreciation-Equipment Accumulated Depreciation-Delivery Equipment Mortgage payable Bonds payable Common stock Paid-in capital in excess Retained earnings 1,800 1,700 100 7,500 3,700 1,500 19,100 62,40012,800 102,600 4,100 5,800 51,00016,400 85,600 $360,600 Total credits Sarasota Corporation Statement of Cash Flows Effects Cash Flows from Operating Activities 20,800 12,700 2,100 Net Income Depreciation Decrease in Accounts Receivable (Net) Increase in Prepaid Expenses Increase in Inventory Increase in Accounts Payable Decrease in Accrued Payables Purchase of Investments 1,500 16,800 9,800 1,700 45,400 20,000 Cash Flows from Investing Activities 5,900 51,000 6,400 15,000 Purchase of Investments Purchase of Building Purchase of Equipment Purchase of Patents Cash Flows from Financing Activities 1,800 Increase in Notes Payable 19,100 Issuance of Mortgage Payable 12,800 Redemption of Bonds 44,000 Issuance of Bonds Totals 108,500112,900 4,400 Net Decrease in Cash 112,900112,900 Totals

Answer 1

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Solution: Retained earnings Total 51000 35900 72000 (72000)-(51000-14900) 360600 450800 Statement of cash flow effects: Operating Activites: Net income Depreciation Decrease in Accounts Receivable Increase in Prepaid Expense Increase in Inventory Increase in accounts payable Decrease in Accrued Payable Decrease in Note Payable 35900 12700 2000 (2100-100) 1500 16800 9800 1700 1800 (Because short term - trade or operation) Cash flow from Investing activities Purchase of Investment Purchase of Building Purchase of equipment Purchase of patent 5900 51000 6400 15000 Cash flow from Financing activities: Naming is missing Payment of dividends or Cash dividend 14900 Issuance of Mortgage payable Redemption of bonds 19100 12800 Naming is missing Issuance of Common stock 44000 Totals Increase in Cash Totals 251400 255700 4300 255700 255700