Question

Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment $244,930$229,680 82,490 244,240 94,620 88,730 250,480 128,470 215,930 700)(58,230) $924,260 $808,730 276,350 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $167,290 $159,320 21,030 7,280 39,630 109,990 471,480 $924,260 $808,730 16,640 9,240 49,910 187,620 493,560 Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year C. The investments were sold for $85,160 cash d. The common stock was issued for cash e. There was a $60,090 credit to Retained Earnings for net income f. There was a $38,010 debit to Retained Earnings for cash dividends declared ent oT Flows For the Year Ended December 31, 20Y9 activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities Net cash flow from operating activities Cash flows from (used for) investing activities Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year

Answer 1

Statement of Cash Flows For the Year Ended December 31, 20Y9 3 Cash flows from operating activities 4 Net Income 5 Adjustments to reconcile net income to net cash flow from operating activites 6 Add: Depreciation 7 Add: Loss on Sale of investment 8 Changes in current operating assets and liabilities 9 Less: Increase in Accounts receivable 10 Less: Increase in Inventories 11 Add: Increase in Accounts Payable 12 Less: Decrease in Accrued Expenses Payable 13 Net Cash flow from Operating Activities 14 Cash flows from (used for) investing activities 15 Investments Sold 16 Land Purchased 17 Equipment 18 Net Cash flow used for Investing Activities 19 Cash flows from (used for) financing activities 20 Common Stock 21 Dividends paid 22 Net cash flow from financing activity 23 Net Cash Increase 24 Cash at the beginning of the year 25 Cash at the end of the year 26 $60,090 6,470 9,460 ($64,700 $58,230) ($94,620- 85,160) $6,240 $6,240 7,970 $-4,390 ($88,730- $82,490) ($2,50,480 $2,44,240) ($1,67,290 $1,59,320) ($16,640 $21,030) $67,120 85,160 S 1,28,470 60,420 ($2,76,350 $2,15,930) S 1,03,730 ($49,910 $39,630)($1,87,620 $1,09,990) ($38,010 ($9,240 $7,280)) 87,910 36,050 51,860 15,250 $ 2,29,680 $2,44,930